Chart of the day: Bearish mood prevails
The top 300 A shares traded in both Shanghai and Shenzhen slipped on Monday along with other mainland Chinese indices, this one though dipping briefly to a new low for this year. Following on from Thursday’s sharp losses, it suggests this week, and maybe the whole of March, will be dominated by cautious downside probing. Backing this view are the 50 and 200-day moving averages, which have been bearish since September 2015, momentum that has just turned negative and the fact that we are no longer oversold on the RSI. Support at 2,800 points ought to hold on a first attempt; below that, watch the 2,700-point area, keeping in mind that key support lies closer to 2,445 points.
Nicole Elliott is a technical analyst