Not much to write home about, and certainly nothing spectacular, but the Shenzhen A-Share Index has been rallying steadily for most of this year. Because the move has been so slow, moving averages have switched from bullish to bearish several times. But they are now positive once again and aligned with a gently rising Ichimoku cloud. It has also meant that observed volatility has been falling over the period and is now the lowest in about two years. Price action since early July can be seen as consolidation at a slightly higher level, capped by horizontal resistance at 2,140 points. During the coming month, we expect a break above here with a measured target at about 2,290 points.
