Chinese Stocks Continue Their Volatility

Investing in the People's Republic of China is not for the faint of heart. The chart of PowerShares Golden Dragon Halter USX China (PGJ), an exchange-traded fund based on 57 companies traded on U.S. exchanges, shows the the volatility of the Chinese stock market.

Currently the price pattern is an ascending triangle, a usually bullish formation that exhibits higher lows and stable highs. If prices are able to break above the resistance level formed by the highs, prices will continue on the upside.

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Posted October 1, 2006.