Chart of the day: Shenzhen A shares stop suddenly
With Europe off on holiday on Friday, it is not surprising that Asian markets were becalmed. This is probably “a good thing” after the sharp gyrations we have seen in the first quarter of the year. Technical analysts will need to remember to look at quarterly candles this Friday as many are likely to have interesting ones. Today’s best chart is the weekly one of Shenzhen A shares, which, on decent volume, have rallied and retraced a Fibonacci 38 per cent of February’s declines. There is a small gap between the bodies of the two latest candles (close at 1,921 points and open at 1,945), which, coupled with last week’s tiny spinning top candle, suggests a drift lower this week to fill the gap.
Nicole Elliott is a technical analyst