Chart of the day: China stocks struggling
The CSI 300 Index has struggled at the 3,250 to 3,270-point resistance area for two consecutive weeks. Horizontal resistance since mid-January and Fibonacci retracement from December’s high explain current hesitation. This is not the end of the world and moving averages are still supportive. But unless we start holding above 3,280 points, the risk is that the index will slip back slowly towards this year’s lows. The last two weekly candles form a doji, denoting instability, followed by a hanging man, which is slightly bearish. Three consecutive closes below the nine-day moving average (currently at 3,186 points) might add some bearish pressure. Be careful and prepare to act if necessary.
Nicole Elliott is a technical analyst