China Stocks Sending Troubling Message To The World. A break of 1-year support sends a bearish message to global stocks!

by Kimble Charting

Is Big Trouble about to hit China? If history is a guide, the answer is yes.

This chart looks at China ETF (FXI) on a monthly basis over the past 15-years. FXI has found line (1) to be resistance three different times in the past 13-years.

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At this resistance line, it has declined 35% or more each time. Last month it created a large bearish reversal pattern while testing this resistance line at (2).

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So far this month, FXI is attempting to break 1-year rising support.

If FXI closes below this support line at the end of the month, it sends a troubling message to stocks around the world!

 

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