Chart Book

Chart of the day: China bonds buoyed

PUBLISHED : Tuesday, 19 September, 2017, 12:06am
UPDATED : Tuesday, 19 September, 2017, 12:06am

The price of 10-year bond futures on the China Financial Futures Exchange collapsed at the end of last year and has been trying to base against the 94-yuan (US$14) area ever since. It made its fourth attempt in August, which happened at the apex of the right-angled triangle that has contained price action this year. Partly because of the switch in the front-month contract from September to December 2017, prices gapped through the upper edge of the pattern and last week managed to break and close above the top of the daily Ichimoku cloud. This is the first small sign that basing activity is at last complete, though we are worried it might be merely because of a downward-sloping cloud.

Nicole Elliott is a technical analyst