Now that options on the China 50 ETF have begun trading in Shanghai this week, it is time to revisit the Shanghai Composite Index for clues on which options might be worth considering. We have shown you this chart before, with a first target at 3,400 points, which was met. Descending volume following December's record, with prices consolidating above the 3,000-point level, hints that things are getting back to normal. Trend-line support and Fibonacci retracement in the 2,975 to 3,050-point area ought to start kicking in this week till the end of the month, with subdued trading during the Lunar New Year factored in. Unsurprisingly, March calls were snapped up.
