Chart of the day: H shares eye new highs
The H-share index has been living in the shadow of the Shanghai Composite Index. But H-share momentum may be beginning to improve. A break above trend-line resistance around its September high of around 11,200 points opens the way for a move to test the 12,200 level, which provided resistance in early 2013. With sentiment not yet overextended, as measured by the proprietary Absolute Strategy Research sentiment index, there seems to be enough support for a push to the next resistance. A sustained move through 12,200 would target a retest of 2010 highs around 14,000.
David McBain is a technical strategist at Absolute Strategy Research