Chart of the day: China Enterprises Index steaming ahead
The futures contract on the Hang Seng China Enterprises Index missed our second measured target at 12,150 points by a whisker. But we shall stick with our longer-term target at 12,700 points, which is the midpoint between the record high in 2007 and the interim low in 2008. What is especially nice about this rally, which started in February last year, is that its steady, step-like price action has meant observed volatility is at the very bottom of its long-term range. Likewise, volume has remained steady and recently bullish momentum has increased. Once again, the lagging line has benefited from the support of the daily candles 26 days ago and we have drawn in a new steeper trend line, which mirrors the angle of the cloud.
Nicole Elliott is a technical analyst