China A50 Index (Short Term): Continuation of Rebound Expected

The Trump administration is privately seeking to reassure U.S. companies they can still do business with Wechat in China, reported Bloomberg citing several people familiar with the matter. This lifted the market sentiment on easing tension between the U.S. and China, while China A50 is up around 1.2% and Tencent jumps 3.8%

China

The Trump Administration is privately seeking to reassure U.S. companies they can still do business with Wechat in China, reported Bloomberg citing several people familiar with the matter. This lifted the market sentiment on easing tension between the U.S. and China, while China A50 is up around 1.2% and Tencent jumps 3.8%


In addition, the People Bank of China would inject 100 billion yuan into the banking system using a 7-day reversing  repurchase agreement and 60 billion yuan with a 14-day reversing repurchase agreement. In addition, there is a 50 billion yuan repurchase agreement to repurchase. Therefore, the People Bank of China made a net injection of 110 Billion yuan in open market operation.

This week, Investors should focus on July Industrial profit, which will be released on Thursday.

On a daily chart, the China A50 Index rises around 1% today and is forming a bullish candlestick. Last Thursday, the Candlestick formed a doji after hitting the rising 50-day moving average. A close above last Thursday's high at 15489 could suggest a reversal signal.

In fact, the Index remains supported by a rising trend line drawn from March, indicating a bullish outlook for the short term trend.

Bullish readers could set the support level at 14750, while resistance level would be located at 16465 (the previous high) and 16935 (127.2% fibonacci expansion).


Source: GAIN Capital, TradingView

More from China A50

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.