Chart Book
PUBLISHED : Monday, 30 June, 2014, 4:55am
UPDATED : Thursday, 03 July, 2014, 6:41pm

Chart of the day: Hang Seng hanging on

BIO

Nicole Elliott is a technical analyst with 32 years experience of financial analysis working for some of the world’s biggest investment banks. Her key expertise is in foreign exchange, interest rate products, bullion, indices and commodities markets. Nicole is a regular TV commentator on financial markets and has authored books on technical analysis for financial professionals. She has a BSc from the London School of Economics.
 

A handful of investors might be disappointed with what they see as lacklustre performance of the Hong Kong equity market over the past year. But sometimes being out of the limelight is the place to be. Tiny increases in US indices might have nudged them to successive record highs, but those moves have been barely noteworthy and frequently spurred by no more than a lack of suitable investment options, hype and hot air. What this chart shows is that the Hang Sang Index is currently stable, strongly tethered even, and comfortable in a broad range between 21,400 and 23,950 points. Indeed with historical and implied volatility low, it suggests traders should continue to position themselves for the status quo. Trading that status quo offers ample scope for profits, given the 11 per cent price range it spans.

Nicole Elliott has worked as a technical analyst for some of the world's biggest investment banks in a 32-year career

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