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Beachcomber sent us an updated view of the Shanghai Stock Exchange (SSEC)  and its long-term trend on the monthly chart posted below.

The length or duration of a trendline, and the angle of ascent or descent of the line, are important factors in determining the significance of the trend being examined.  The SSEC chart shows a gradual rising 17 year rising bottom line; that is a significant trend!

A break of this trendline will have powerful bearish implications.  Trendline breaks are measured for minimum price objectives like other price patterns e.g. “peak to trendline projected down from the break.”

A trendline break of this size for the SSEC has the potential to put the index back to levels last seen when Beijing got its first McDonald’s.

Fries with that break anybody…?

SSEC Long-Term Monthly Pattern

Disclaimer: This communication should not be construed as an offer to sell or the solicitation of an offer to buy any security. (Click here for full disclaimer)