Chart of the day: H shares back with a bang
The Hang Seng China Enterprises Index futures contract retreated slightly in the first two weeks of December, only to find support from the Fibonacci 61 per cent retracement level, the 26-week moving average and the trend line taken from the low in February 2016. Now on these first few days of trading in 2018, it has seen considerable follow-through and looks set to retest last year’s high of 12,095 points, in turn the highest level since the rather dramatic slide in the second week of September 2015. All aspects of the weekly Ichimoku cloud charting system are positive, which ought to see the neat bullish trend that started two years ago continue, maybe for the first half of this calendar year.
Nicole Elliott is a technical analyst