The Shanghai Index, Copper and Freeport McMoran (FCX) look to be forming large descending triangle patterns. If you are unfamiliar with this pattern please read about them here Bottom line to this pattern, a break of support suggests a decline, the size of the triangle!
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The key to this patterns is the support line, which must hold, or sellers will step in. Commodities and the largest country in the world don’t have much to brag about over the past few years, other than poor performance and relative weakness! If support breaks, the new thing they could get to brag about ….”we sent a signal ahead of time that the macro picture was about to slow down.”
Support at this time is STILL IN PLACE…. support has NOT broken. I am attempting to make you aware of this pattern should it come true, so you could be thinking about portfolio construction ahead of time.
via Kimble Charting Solutions Blog » Shanghai, Copper and Freeport going to fall hard?.
Images: via Flickr (licence attribution)