Chart of the day: Rally hopes in ChiNext
Although shares on the ChiNext board barely reacted to the announcement of Shenzhen’s stock link with Hong Kong, we should still keep an eye on the charts of the latter because technically they are looking interesting. The board was launched in 2010 to reflect equities in the Growth Enterprise Market and initial euphoria was pricked in mid-2015 with volumes peaking later that year. Since then, consolidation takes the shape of a massive triangle, historical volatility is back down at more normal levels and volumes have held up well, underlining investor interest. With momentum positive, we feel it is just a matter of time before we break the top edge of the triangle with a target at 3,300 points.
Nicole Elliott is a technical analyst