Chart of the day: The swooning of the CSI 300 Index
Exactly a month ago, we wrote that the CSI 300 Index had strong bullish momentum, hoping it would rally to our second target at 4,400 points by the Lunar New Year, and it did so in style. Look what happened next though, swooning along with many global equity indices on very high volume as investors panic. At times like this, what is needed are clear heads and proper tactics. Observed volatility after the fall is back to its long-term mean, so it could increase even further. Prepare for big moves and watch for signs of basing between the 26-week moving average and the ultra-long-term trend channel support ahead of the rising Ichimoku cloud.
Nicole Elliott is a technical analyst