The Shanghai Composite is trading very sloppy again and looks like a break of the 3-year low at 1995 is in the cards. Last week it tested and bounced twice off this level on rumored government intervention.
Kimble Charting Solutions put together this excellent chart illustrating the Shanghai’s ugly long-term pattern and the importance that current support holds. The index is almost down a stunning 70 percent from its 2007 highs.
Will another 10 percent of downside blow up global markets? Who knows and we sure hope not.
Keep it on your radar.
Click on chart to enlarge and for better resolution.
(click here if chart is not observable)