I have received a rather large number of emails from viewers, especially from overseas, asking for an update to the “Shanghai Flag” pattern. On 1/21 I produced the chart below. (see post here) The post discussed that even though the Shanghai index had been doing poorly at that time, it was setting on key support at (3).
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Below is an update to this pattern…
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Since the first post, the Shanghai index has rallied almost 9% in value and now finds itself within 3% of key resistance, the top of the flag. In the past Flags were only good in predicting one thing…That a huge move will take place on the breakout/breakdown!
Game plan…be patient and follow the rather large move that should come from this pattern.
Looks good Chris!
Watching FXP, intraday through next Monday. !
My intraday price trigger, will trigger my CZI order (conditional order)!
B Ferro, I see the pattern in EWP as well, but I do not see a breakout yet. I see it near the top of flag pattern, will be looking for volume on breakout.
FYI – Spain’s IBEX is posting a nearly identical pattern though I have it actually breaking out right now vs Shanghai which has yet to. Would like to see your thoughts on this…
Great chart, have been keeping an eye on this. In the case of a breakout, what is the stock or fund that we can used to play this? Much thanks!