Chart of the day: Offshore yuan changes tack
Volumes traded so far this month remain respectable but well below the peak achieved as prices slumped on June 1. As we had predicted that low point marked the end of an A, B, C-type correction and not only did prices stabilise (allowing observed volatility to return to its long-term mean) but have now started making their way back up again, and more slowly. Momentum looks set to turn bullish, possibly as soon as this week, and the MACD is bullish too; note that 50- and 200-day moving averages have remained bullish throughout recent moves. We continue to favour a re-test of this year’s highs, probably in the third quarter of the calendar year.
Nicole Elliott is a technical analyst