What happened yesterday
The FTSE/Xinhua China A50 has pierced below the daily pivotal support at 10540/10480 and drifted down towards the range support. Please click on this link for more details on our previous daily outlook.
Key elements
- Current price action is still above the trendline support of the range configuration in place since 19 January 2015.
- The 11200/11300 trendline resistance also corresponds with the 0.764 Fibonacci projection from 19 January 2015 low to 02 February 2015 low.
- The hourly RSI oscillator has managed to bounce from the trendline support close to its oversold region.
Key levels
Pivot (key support): 10270
Resistance: 10810 & 11200/11300
Next support: 10030/9980
Conclusion
Watch the daily pivotal support at 10270 for a potential rebound towards 10810 in the first instance. Only a break above 10810 is likely to trigger a further push up towards the range top resistance at 11200/11300.
On the other hand, a break below 10270 may see a further push down towards 19 January 2015 swing low at 10030/9980.
Disclaimer
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