When China’s economic movements reverberate, global markets pay heed.

Today, we delve into the extensive historical graph of a significant Chinese stock market benchmark.

Is the Shanghai Stock Exchange Composite (SSEC) on the brink of a pivotal moment?

Noticeably, the SSEC recently breached a substantial pennant formation, signaling a bearish trend.

Presently, the index is retesting the lower boundary of the triangle (1) in a critical evaluation of resistance. A successful surge back into the triangle and beyond would indicate a bullish momentum.

However, a failure at this juncture, leading to a downturn, would paint a bearish outlook.

The outcome at point (1) will echo a significant message across global stock markets. Watch this space closely.