China A50 Index: Bullish Bias above 15380

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China A50 fell 1.8% on Monday as the global market drifted lower on the surge of coronavirus cases. Kweichow Moutai (600519), one of the heavy weight index stocks, reported that 3Q net income grew 6.7% on year to 11.2 billion yuan on revenue of 23.9 billion yuan, up 7.2%. The company dropped 4.2% after the release of  its 3Q result.

Investors should focus on the official October manufacturing PMI (vs 51.3 expected) and non-manufacturing PMI (vs 56.1 expected), which will be released on Saturday.

From a technical point of view, the index remains holding above both 20-day and 50-day moving averages after breaking above its declining trend line drawn from July's top. The relative strength index is also supported by a rising trend line drawn from February.

Bullish readers could set the nearest support level at 15380, while resistance levels would be located at 16485 and 17550.

Chart analysis demonstrating China A50 Index Bullish Bias Above 15380. Published in October 2020 by FOREX.com
Source: GAIN Capital, TradingView
Related tags: China A50 Indices

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