ChiNext Composite the outperformer
Just over a month ago, we wrote that the index of all shares listed on the Growth Enterprise Board, the ChiNext, had broken up out of a small symmetrical triangle, and should rally to retracement resistance at 2155. It’s got there and more, up 7.6 per cent since the beginning of this year, outpacing other Chinese stock indices. Investor interest is clear, average daily volumes doubling since the early December low point, yet observed volatility low by historical standards. We’re now hovering just under 61 per cent Fibonacci resistance, and it’s overbought on the Relative Strength Index indicator, so expect some hesitation here. Then on up again to final Fibonacci retracement resistance around 2550-2580.
Tags: ChiNext, Fibonacci, relative strength
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