China’s Shanghai Composite Stock Index Nearing Decision Time
Chris Kimble | Aug 28, 2023 20:39
China has the world’s largest population and second-largest economy, so it’s always wise to keep an eye on the Chinese economy and stock market.
Today we look at the latter, eyeing up a 10-year indecision pennant pattern on the Shanghai Composite Index.
As you can see, the lower highs (red arrows) and higher lows (green arrows) have guided this pennant pattern into an ever-narrowing squeeze. There is not much room left here, so we should expect a decision soon.
Will it be in the form of a breakout (higher) or breakdown (lower)?
In my humble opinion, when the world’s largest country decides its next big move, it will be important to the world. Stay tuned.
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