Investing.com - Financial Markets Worldwide
⚠ Selloff or Market Correction? Either Way, Here's What to Do NextSee Overvalued Stocks

FTSE China A50 Eyeing For A Potential Break Above A 4-Year High

ByCity Index
AuthorKelvin Wong
Published 01/12/2020, 01:17 AM
FTXIN9
-

Medium-Term Technical Outlook: FTSE China A50

China A50 Weekly Chart
China A50 Daily Chart

Key Levels (1 to 3 months)

  • Pivot (key support): 14170

  • Resistances: 16000 & 16420

  • Next supports: 13560 & 12600

  • Directional Bias (1 to 3 months)

    • Bullish bias in any dips above 14170 key medium-term pivotal support for a further potential upleg up to test 14770 before targeting the next resistances at 16000 and 16420 next.

    However, a break with a daily close below 14170 invalidates the recent bullish breakout for a slide back to retest the ascending trendline from 24 May 2019 acting as a support at 13560.

    Key elements

    • The FTSE China A50 has managed to stage a rebound of 1.19% today after a recent retest 3 days ago on the former range resistance of the 7-month “Ascending Triangle” range configuration from 24 May 2019 low. This observation suggests a positive follow-through that indicates a potential fresh round of bullish participation after the earlier bullish breakout from the “Ascending Triangle” range on Dec. 30, 2019.

  • Long and medium-term upside momentum of price action remains intact as indicated by both the weekly and RSI oscillators that has continued to inch higher from their respective corresponding supports and have not reached extreme overbought conditions.

  • The significant medium-term resistances of 16000 and 16420 are defined by the 1.00 Fibonacci projection of the up move from Jan. 4, 2019 low to 19 Apr 2019 high projected from 24 May 2019 low and the exit breakout potential from the “Ascending Triangle” range.

    • Original Post

    Latest comments

    Loading next article…
    Install Our App
    Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
    Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
    Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
    It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
    Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
    © 2007-2024 - Fusion Media Limited. All Rights Reserved.