Chart of the day: Taiwan's turn to shine

Last week, good volume and the biggest net - US$2.6 billion - inflow to the Taiwan stock exchange since 2007 propelled the benchmark Taiex index to the 10,000 level. The source of the spurt was speculation the stock exchange might be opened up to mainland investors, following the model of the Shanghai-Hong Kong Stock Connect scheme. The rally has seen the Taiex top 2007's peak and bring it within sight of those of 1997 and 2000. These are certainly challenging chart levels - the 75 per cent and 78.6 per cent Fibonacci retracements of the 1990's carnage. A monthly close above 9,960, and a quarterly one above 10,300, put the Taiex in line for the record high at 12,424. It also hints that the unsteady swings inside the massive triangle are coming to an end.