China A50 Index CFD: The uptrend remains
Medion Jim December 3, 2020 11:14 PM
China A50 Index has quiet sessions after Tuesday's rally.
On the economic front, China's Caixin Services PMI rose to 57.8 in November (56.4 expected) from 56.8 in October. Key findings included: "Substantial rise in business activity amid quickest increase in new work since April 2010 (...) Employment growth strongest since October 2010 (...) Input costs rise at sharpest pace for over a decade."
The sentiment of the China A50 Index could be affected by the global market. The movement of the U.S. market could give a hint whether the China A50 index can record a new 52-week high. Investor should await of the U.S. nonfarm payroll reports for trigger a momentum trade.
On a daily chart, the index is holding on the upside after breaking above the ascending triangle pattern. Currently, it is still trading above both 20-days and 50-day moving averages. The support level is raised to 16000, while index could expect a rise to the resistance level at 17550 and 18240.
Source: GAIN Capital, TradingView
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