China A50 Index: Bullish Bias above 15380
Medion Jim October 27, 2020 1:35 PM
China A50 fell 1.8% on Monday as the global market drifted lower on the surge of coronavirus cases.
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.
Source: GAIN Capital, TradingView
From time to time, GAIN Capital Australia Pty Ltd (“we”, “our”) website may contain links to other sites and/or resources provided by third parties. These links and/or resources are provided for your information only and we have no control over the contents of those materials, and in no way endorse their content. Any analysis, opinion, commentary or research-based material on our website is for information and educational purposes only and is not, in any circumstances, intended to be an offer, recommendation or solicitation to buy or sell. 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. No representation or warranty is made, express or implied, that the materials on our website are complete or accurate. We are not under any obligation to update any such material.
As such, we (and/or our associated companies) will not be responsible or liable for any loss or damage incurred by you or any third party arising out of, or in connection with, any use of the information on our website (other than with regards to any duty or liability that we are unable to limit or exclude by law or under the applicable regulatory system) and any such liability is hereby expressly disclaimed.