Futures volume on the H-share index has been high since early 2015 despite steadier price moves since February 2016, testament to a maturing market. Historical volatility is currently less than half of the peak over the observed period, one standard deviation below the mean regression – another sign of a healthy market. Snaking neatly inside a trend channel, moving averages supportive since last summer, and now the lagging line pushed up by the candles of 26 weeks ago. This year the index broke above massive bearish cloud resistance, then switched its direction in March – supportive of further rallies. Friday’s close at the highest point since October 2015 will help propel it to the first retracement resistance.

Nicole Elliott is a technical analyst