China A50 Index Expects Another Up Move

China's stock market rose after the National Day holiday. The close price of China A50 Index recorded a 2-month high.

China

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

Disclaimer: The information on this web site is not targeted at the general public of any particular country. It is not intended for distribution to residents in any country where such distribution or use would contravene any local law or regulatory requirement. The information and opinions in this report are for general information use only and are not intended as an offer or solicitation with respect to the purchase or sale of any currency or CFD contract. All opinions and information contained in this report are subject to change without notice. This report has been prepared without regard to the specific investment objectives, financial situation and needs of any particular recipient. Any references to historical price movements or levels is informational based on our analysis and we do not represent or warranty that any such movements or levels are likely to reoccur in the future. While the information contained herein was obtained from sources believed to be reliable, author does not guarantee its accuracy or completeness, nor does author assume any liability for any direct, indirect or consequential loss that may result from the reliance by any person upon any such information or opinions.

Futures, Options on Futures, Foreign Exchange and other leveraged products involves significant risk of loss and is not suitable for all investors. Losses can exceed your deposits. Increasing leverage increases risk. Spot Gold and Silver contracts are not subject to regulation under the U.S. Commodity Exchange Act. Contracts for Difference (CFDs) are not available for US residents. Before deciding to trade forex and commodity futures, you should carefully consider your financial objectives, level of experience and risk appetite. Any opinions, news, research, analyses, prices or other information contained herein is intended as general information about the subject matter covered and is provided with the understanding that we do not provide any investment, legal, or tax advice. You should consult with appropriate counsel or other advisors on all investment, legal, or tax matters. References to Forex.com or GAIN Capital refer to GAIN Capital Holdings Inc. and its subsidiaries. Please read Characteristics and Risks of Standardized Options.