China A50 Index: Waiting an upside breakout signal

The China A50 Index is still holding on upside after the market sentiment is lifted by the progress of vaccines. Sinopharm applied for regulatory approval from China to launch the vaccine, according to Xinhua Finance.

China

The China A50 Index is still holding on upside after the market sentiment is lifted by the progress of vaccines. Sinopharm applied for regulatory approval from China to launch the vaccine, according to Xinhua Finance.

On the economic front, industrial profit increased 28.2% on year in October. On the other hand, investors are still waiting for the official PMI and Caixin PMI data, which will be released next week.

On a daily chart, the index is trading within the flag pattern after breaking above the consolidation zone. A break above the pattern would signal the continuation of the previous up trend. As long as the support level at 15600 is not broken, the index could consider a rally to the resistance levels at 17550 and 18240.


Source: GAIN Capital, TradingView


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