Shanghai Exchange ended 2018 as the world’s worst market performer for a second year, falling 25% over 12 months as the trade war between China and the United States weighed on the Chinese economy.
China’s economic growth slowed to 6.5% in the third quarter, the slowest pace since quarterly data began to be compiled in 1992.
So why did the exchange have its best week last week in four years. Thanks to optimism over U.S.-China trade talks, the two sides reportedly met for more than nine hours Thursday of last week President Trump and on Sunday Trump twitted an extension to the March 2nd trade tariff deadline.
This optimism has not only been propelling the US equity markets higher, but also many of the Chinese stocks and Chinese equity markets. Lets go to the charts to see if this bullish price action in the Shanghai Exchange as of late will continue.
The weekly chart suggests price can move a lot higher before stalling out.
This post is my personal opinion. I’m not a financial advisor, this isn’t financial advise. Do your own research before making investment decisions.