Another Shanghai Flag?
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Thirteen months ago the Power of the Pattern suggested that the Shanghai Composite was breaking below a multi-year flag/pennant pattern at (1) in the chart below. My expectation was that global softness/contraction should take place (See post here). The portfolio construction message of the breakdown a year ago was to reduce risk exposure.
Now this key index is attempting to break below another flag/pennant/support line at (2) in the chart.
Will the outcome this time be different?
(c) Kimble Charting Solutions