China-Double Topping At 2007 highs?

by Kimble Charting


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.

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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.

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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!