The volume of shares traded making up the Taiwan Weighted Index has been increasingly steadily this year, helping propel the quite spectacular rally that started from at an interim low in 2015. Since this April prices have broken successive secular highs (the horizontal red lines on the chart), Friday’s closing price was the strongest weekly close since 1990. Moving averages are clearly bullish – as has been the case since April 2016 – and we are trading well above the Ichimoku cloud and trend-line support. Though a potential broadening top has been forming this summer, if we can break above its upper edge then this index should be on track to match the record high at 12,424 points set in February 1990.

Nicole Elliott is a technical analyst