China A50 Index Expects Another Up Move
Medion Jim October 12, 2020 10:43 PM
China's stock market rose after the National Day holiday. The close price of China A50 Index recorded a 2-month high.
China's stock market rose after the National Day holiday. The close price of China A50 Index recorded a 2-month high.
Last Friday, Caixin China Service PMI rose to 54.8 in September, better than the expectation of 54.3, from 54.0 in August. Key findings included: "Business activity and new orders both expand at quicker rates (...) Employment rises for second month in a row (...) Inflationary pressures weaken."
Investors should focus on September CPI (vs +1.9% on year expected) and PPI (vs -1.8% on year expected), which will be released on the Thursday.
From a technical point of view, the index broke above a declining trend line drawn from July's high, suggesting that the correction from July might be completed. Currently, the index prices returned the level above both 20-day and 50-day moving averages. Besides, the relative strength index rebounded from 40, indicating that the market market sentiment remains positive.
Bullish readers could set the support level at 15025, while the resistance levels would be located at 16485 and 17550.
Source: GAIN Capital, TradingView
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