China Stocks Sending Troubling Message To The World
Chris Kimble | Mar 25, 2021 10:28AM ET
Is big trouble about to hit China? If history is a guide, the answer is yes.
This chart looks at iShares China Large-Cap ETF (NYSE: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.
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).
So far this month, FXI is attempting to break one-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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