China A50 Index: Challenging the High of July

China A50 Index initiates a good start in November as the index prices rise around 4% since November.

China

China A50 Index initiates a good start in November as the index prices rise around 4% since November.

Caixin China Service PMI rose to 56.8 in October (55.0 expected) from 54.8 in September, while Caixin China Manufacturing PMI rose to 53.6 (52.8 expected) from 53.0. Both economic data would suggest that China's economy is gradually improving after the outbreak of coronavirus.

Investors should focus on the CPI (+0.8% on year expected) and PPI (-1.9% on year expected), which will be released next week.

On a daily chart, China A50 Index is challenging the July's high at 16490 now. In fact, the index looks like to validate the continuation of round bottom. Currently, the index prices are trading above both rising 20-day and 50-day moving averages. The relative strength index breaks above the declining trend line drawn from July.

Bullish readers could set the support level at 15600, while the resistance levels would be located at 17550 and 18240.


Source: GAIN Capital, TradingView

More from Indices

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.