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Here is an update on Chris Kimble's January 20th analysis, which called our attention to a 3-year flag in the Shanghai Composite. The top charts is the one from January and the second is today's update. Check out Chris's comments below.
Chris comments: On January 20th I shared that even though the Shanghai index had been doing poorly of late. The index was touching support on a giant flag pattern at 2,677.
Now the index has rallied over 9% and finds itself within 3% of falling resistance — the top of the flag.
Flags aren't very good about suggesting whether a breakout or breakdown will take place. But if history remains the same, a huge move will be the result.
Investors will want to follow the breakout/breakdown when it happens as this flap pattern has taken a long time to complete.
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