The Shanghai A-Share Index has been outperforming its Shenzhen equivalent this year, putting on a nice spurt following the Lunar New Year holiday as expected. Moving averages are now bullish, both current candles and the lagging line are holding above the top of the rising Ichimoku cloud, and we are comfortably back in the middle of the upward-sloping channel that has dominated since July. The trend line taken from January last year managed to stem last month’s blip lower and, interestingly, despite this, historical volatility is among the lowest this century. We continue to target a retest of Fibonacci retracement resistance at 3,440 points and long-term resistance at 3,535 points. Progress beyond here might be hard work.
