Chart of the day: Shenzhen stocks play catch-up
The Shenzhen A-Share Index met our first target at 2,100 points, and bang on time. Since then, it has consolidated slightly haphazardly, caused in part by the National Day holiday. Nevertheless, it has managed to hold above the steep trend line, and last week the lagging line was supported by the candles of 26 days ago. Moving averages remain bullish and appear to have helped prices nudge higher this week. The Ichimoku cloud is also very thick and sloping strongly higher, which are bullish signs as well. Added to these positive features is an element of catch-up as this gauge, unlike the Shanghai A-Share Index and the Shanghai Composite Index, has yet to break above last year’s high. Therefore, our next target is the 2,230-point level.
Nicole Elliott is a technical analyst