ftsexinhua china a50 weekly outlook for 05 jan to 09 jan 10800 is the support to watch for a potenti
<p>What happened last week The FTSE/Xinhua China A50 Index has pull-backed towards our pre-defined intermediate support at 11270 as expected. Please click on this link […]</p>
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What happened last week
The FTSE/Xinhua China A50 Index has pull-backed towards our pre-defined intermediate support at 11270 as expected. Please click on this link for more details on our previous weekly outlook.
Key elements
- The long-term key resistance zone for the Index stands at 13270 (August 2009 swing high)/133880 which also confluences with the 1.00 Fibonacci projection from 20 Oct 2008 low to 03 August 2009 high (see weekly chart).
- Current price action is now right above the upward sloping 13-day Moving Average which is coming to support the Index at around 11270 (see daily chart).
- The lower boundary of the intermediate term ascending channel (in orange) is at 10800 which also coincides with the 38.2% Fibonacci retracement from 10 December 2014 low to 05 January 2015 high (see 4 hour chart).
- The 12950/13270 resistance zone confluences with the upper boundary of the intermediate term ascending channel and Fibonacci projection cluster (see daily chart) .
- Both the short and intermediate term Stochastic oscillators have dipped into their oversold regions (see daily & 4 hour charts).
Key levels (1 to 3 weeks)
Pivot (key support): 10800
Resistance: 12000 & 12950/13270
Next support: 9200
Conclusion
As long as the weekly pivotal support at 10800 holds, the Index may see a recovery to retest the recent swing high at 12000 before targeting the significant resistance zone of 12950/13270.
On the other hand, failure to hold above 10800 is likely to damage the bullish trend in place since March 2014 for a potential correction towards the next support at 9200.
Source: Charts are from City Index Advantage & eSignal
Disclaimer
The information contained in this material is intended for general circulation only. It should not be construed as a recommendation, or an offer (or solicitation of an offer) to buy or sell any financial products. The information provided does not take into account your specific investment objectives, financial situation or particular needs. Before you act on any recommendation that may be contained in this report, independent advice ought to be sought from a financial adviser regarding the suitability of the investment product, taking into account your specific investment objectives, financial situation or particular needs. All queries regarding the contents of this material are to be directed to City Index Asia Pte Ltd.
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