Does China A50 Index Rebound Finish?
Medion Jim September 9, 2020 5:00 AM
China A50 Index continues to weaken, following the drop of the global market due to sell off of technology stock. Today, China's Chinext Index extends fall to 3.6%.
China A50 Index continues to weaken, following the drop of the global market due to sell off of technology stock. Today, China's Chinext Index extends the loss to 3.6%.
China CPI rose 2.4% on year in August, as expected, while PPI dropped 2.0%, lower than the expectation of -1.9%, according to the government.
From a technical point of view, China A50 index failed to post a sustainable rebound and broke below the rising channel, indicating a reversal signal, on a daily chart.
The death cross between 20-day and 50-day moving averages has been identified, while the relative strength index dropped below the neutrality level at 50.
In this case, the bearish readers could set the resistance level at 16000, while support levels at 14750 and 13940.
Source: GAIN Capital, TradingView
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