The BRIC (Brazil, Russia, India, China) markets completely fell apart during the downturn in commodities and global manufacturing over the last two years. But 2016 has been a different story. The first few weeks of the year saw continued pain, but once lows were put in, equities in all four BRIC countries staged massive rallies.
Below we take a look at short and long-term price charts for China’s Shanghai Composite (in local currency). We’ll also be doing additional posts with the same charts for markets in Brazil, Russia and India.
The six-month chart for the Shanghai shows a double bottom put in back in February and March, and just today the index tried to make another leg higher above a consolidation phase that it has been in over the last couple of weeks.
The one-year chart shows that recent price action has pushed the index above the top of a downtrend channel that goes back to last June. The five-year chart shows the same downtrend break, but it puts into perspective just how extreme the moves have been for Chinese stocks over the last two years.
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