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By HaleStewart September 15, 2015 12:18 pm
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China's Market "Meltdown" Really Isn't that Big A Technical Deal

     I’m a big fan of analyzing market data from several different time frames, which helps to remove the “signal from the noise.”  Using long-term data for China shows an incredibly average equity market:

Above is a five-year, weekly chart of the Shanghai market.  It shows three clear price technical developments:

  1. From 01/13 through 07/14, prices consolidated in a triangle pattern.
  2. From 07/14 through 06/15, prices rallied between 140% and 150% (depending on the exact starting point used for the rally).
  3. From 07/15 through today, prices sold off to the 38.2% Fibonacci level.

If prices break this level, the 200 week EMA is the next logical technical target.

Technically, this chart is pretty routine.




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