Chart Book

Chart of the day: Long-term looks

PUBLISHED : Tuesday, 03 January, 2017, 8:44pm
UPDATED : Tuesday, 03 January, 2017, 9:07pm

This time of year is special in many ways, and for technical analysts is an especially good time to have a good, hard look at the long-term prospects for all sorts of markets – and how they might interact with each other. We’ve picked a quarterly chart of the Shanghai Composite (because it’s the one with the longest data series), with traded volume plotted along the bottom. While some might prefer the wild swings of 2007-2008 and 2015, lower volatility and tighter ranges are usually a sign of a mature market that is more likely to prove a sound investment. This is reflected in part by volumes which have been high over the last two years.

Nicole Elliott is a technical analyst