Is China Double-Topping At 2007 Highs?

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September 6, 2018 6:06am NYSE:FXI

From Chris Kimble: Did the Hang Seng Index just create a “Double Top” at the same price it peaked in 2007? Let’s investigate.

This chart looks at the Hang Seng Index on a weekly basis over the past 15-years. As you can see it peaked in 2007 and then proceeded to lose over two-thirds of its value. After the large decline, it created a double bottom/higher lows in 2009, where it started a new rising trend.

The 9-year rally off the 2009 lows saw it hit 2007 highs and the underside of two rising channels earlier this year at (1), where it might have double topped.

Since reversing at 2007 highs at (1), it is now breaking 3-year rising support at (2) and below 2015 highs.

Rising channel support off the 2009 lows comes into play around 22,000, around 20% below current prices. Keep a close eye on this key index as weakness in China could spill over into the states!

If you would like to stay on top of important price patterns from China and Europe, we would be honored if you were a Global Trends member.

The iShares China Large-Cap ETF (FXI) rose $0.26 (+0.63%) in premarket trading Thursday. Year-to-date, FXI has declined -10.57%, versus a 8.74% rise in the benchmark S&P 500 index during the same period.

FXI currently has an ETF Daily News SMART Grade of C (Neutral), and is ranked #8 of 39 ETFs in the China Equities ETFs category.

This article is brought to you courtesy of Kimble Charting Solutions.

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