Let’s take a look at today’s 2-pack of charts to see why the Hang Seng Index (and perhaps select emerging markets) could be primed for a rally.
Hang Seng Monthly Chart
Looking at the chart below, the Hang Seng this month is testing triple support at point (2). As well, it looks to be creating a large bullish reversal pattern.
Good news for bulls if this support continues to hold…
Global Market Performance Chart
As you can see, Chinese stocks have been very hot of late.
The iShares MSCI China Index Fund (MCHI) was unchanged in premarket trading Thursday. Year-to-date, MCHI has declined -5.89%, versus a 9.66% rise in the benchmark S&P 500 index during the same period.
This article is brought to you courtesy of Kimble Charting Solutions.