China A50 Index Short Term Supported by a Rising Trend Line
China A50 Index posted a pullback after soaring around 35% from the low of March to the high of July at 16465. Then, Index has started to rebound since July 27. What shall we arrange the trade set up in August?
Share this:
China A50 Index posted a pullback after soaring around 35% from the low of March to the high of July at 16465. Then, Index has started to rebound since July 27. What shall we arrange the trade set up in August?
In this week, Caixin China manufacturing PMI rose to 52.8 in July (vs 51.1 expected) from 51.2 in June, while services PMI dropped to 54.1 (vs 58.0 expected) from 58.4. For the PMI data, although services PMI unexpectedly dropped, both PMI data is still above the expansion level of 50.
More important economic data will come next week. Investors should focus on the CPI (+2.6% on year expected), PPI (-2.5% on year expected), industrial production (+5.1% on year expected) and retail sales (+0.1% on year expected).
From a technical point view, China A50 Index remains supported by a rising trend line and 50-day moving average on a daily chart.
Currently, the index prices has confirmed a bullish breakout of falling wedge pattern, indicating the resumption of previous up trend.
Bullish readers could set the support level at 14670 (the high of January), while the resistance levels would be located at 16465 (the previous high) and 16935 (127.2% fibonacci expansion).
Source: Gain Capital, TradingView
In this week, Caixin China manufacturing PMI rose to 52.8 in July (vs 51.1 expected) from 51.2 in June, while services PMI dropped to 54.1 (vs 58.0 expected) from 58.4. For the PMI data, although services PMI unexpectedly dropped, both PMI data is still above the expansion level of 50.
More important economic data will come next week. Investors should focus on the CPI (+2.6% on year expected), PPI (-2.5% on year expected), industrial production (+5.1% on year expected) and retail sales (+0.1% on year expected).
From a technical point view, China A50 Index remains supported by a rising trend line and 50-day moving average on a daily chart.
Currently, the index prices has confirmed a bullish breakout of falling wedge pattern, indicating the resumption of previous up trend.
Bullish readers could set the support level at 14670 (the high of January), while the resistance levels would be located at 16465 (the previous high) and 16935 (127.2% fibonacci expansion).
Source: Gain Capital, TradingView
China A50 Index posted a pullback after soaring around 35% from the low of March to the high of July at 16465. Then, Index has started to rebound since July 27. What shall we arrange the trade set up in August?
In this week, Caixin China manufacturing PMI rose to 52.8 in July (vs 51.1 expected) from 51.2 in June, while services PMI dropped to 54.1 (vs 58.0 expected) from 58.4. For the PMI data, although services PMI unexpectedly dropped, both PMI data is still above the expansion level of 50.
More important economic data will come next week. Investors should focus on the CPI (+2.6% on year expected), PPI (-2.5% on year expected), industrial production (+5.1% on year expected) and retail sales (+0.1% on year expected).
From a technical point view, China A50 Index remains supported by a rising trend line and 50-day moving average on a daily chart.
Currently, the index prices has confirmed a bullish breakout of falling wedge pattern, indicating the resumption of previous up trend.
Bullish readers could set the support level at 14670 (the high of January), while the resistance levels would be located at 16465 (the previous high) and 16935 (127.2% fibonacci expansion).
Source: Gain Capital, TradingView
In this week, Caixin China manufacturing PMI rose to 52.8 in July (vs 51.1 expected) from 51.2 in June, while services PMI dropped to 54.1 (vs 58.0 expected) from 58.4. For the PMI data, although services PMI unexpectedly dropped, both PMI data is still above the expansion level of 50.
More important economic data will come next week. Investors should focus on the CPI (+2.6% on year expected), PPI (-2.5% on year expected), industrial production (+5.1% on year expected) and retail sales (+0.1% on year expected).
From a technical point view, China A50 Index remains supported by a rising trend line and 50-day moving average on a daily chart.
Currently, the index prices has confirmed a bullish breakout of falling wedge pattern, indicating the resumption of previous up trend.
Bullish readers could set the support level at 14670 (the high of January), while the resistance levels would be located at 16465 (the previous high) and 16935 (127.2% fibonacci expansion).
Source: Gain Capital, TradingView
Latest market news
The complete CFD trading experience
Award-winning platforms, competitive spreads, low commissions and dedicated support.
We live and breathe the markets and are dedicated to helping traders realise their ambitions as we continue to set the industry bar.
Economic calendar
Web Trader platform
Our sophisticated web-based platform is packed with features.
Related articles
Dow Jones forecast: Stock markets under pressure from multiple sources
When looking at the major tech-heavy US indices like the S&P 500 or the Nasdaq 100, you wouldn’t think that the stock market is particularly weak. Yet, beneath the surface, the market is far from healthy right now. Investors are evidently just piling into the big tech and AI names, and as a result, market breadth is deteriorating. Other indices like the small cap Russell 2000 and the Dow Jones are starting to reflect that weakness.
Nikkei breakout accelerates as yen weakness returns
Nikkei has started October with a powerful breakout, helped by renewed yen weakness and strong upside momentum
S&P 500 Forecast: SPX Continues to Drift Away from Record Highs
Recent trading sessions have done little to restore confidence in the equity market. Over the last four sessions, the S&P 500 has declined by nearly 1.00%, a move that highlights growing short-term weakness and keeps the index moving further away from its record-high territory.
StoneX Europe Ltd may make third party material available on this website which may contain information included but not limited to the conditions of financial markets. The material is for information purposes only and does not contain, and should not be construed as containing, investment advice and/or investment recommendation and/or an investment research and/or an offer of or solicitation for any transactions in financial instruments; any decision to enter into a specific transaction shall be made by the client following an assessment by him/her of their situation.
StoneX Europe Ltd makes no representation or warranty and assumes no liability as to the accuracy or completeness of the information provided, nor any loss arising from any investment based on a recommendation, forecast or other information supplied. You should always seek independent advice as to your suitability to speculate in any related markets and your ability to assume the associated risks, if you are at all unsure. We are not under any obligation to update any such material. Any opinion made may be personal to the author and may not reflect the opinion of StoneX Europe Ltd.