2019 year to performance of Asia ex Japan stock markets till 15 Nov
click to enlarge chart
Medium-term technical outlook on FTSE China A50
click to enlarge charts
Key Levels (1 to 3 weeks)
Intermediate resistance: 13560
Pivot (key resistance): 14465
Supports: 13560 (trigger), 12860 & 12460
Next resistance: 15700/16770
Directional Bias (1 to 3 weeks)
Bearish bias below 14465 key medium-term pivotal resistance a break below 13560 reinforces a further a potential multi-week corrective decline to target the next supports at 12860 and 12460 within a long-term secular ascending range configuration in place since Oct 2008 low.
On the other hand, a clearance with a daily close above 14465 sees a continuation of major uptrend in place since Dec 2018 to set sight on the secular ascending range resistance at 15700/167700.
- The recent 5-month up move of 16% from its 24 May 2019 low has started to stall right below the descending resistance from Jun 2015 major swing high (see weekly chart).
- Price action has also formed an impending weekly “Evening Star” candlestick pattern that tends to indicate a potential bearish reversal in price action after an uptrending phase.
- The weekly RSI oscillator has also shaped a bearish divergence signal since Jul 2019 which indicates the upside momentum has started to wane which increases the risk of a medium-term bearish reversal in price action of the Index.
- The daily RSI oscillator has staged a breakdown from its ascending support which is in parallel with the price action ascending support from 27 May 2019 low. These observations suggest a potential presignal breakdown below the ascending support of 13560.
- The next significant medium-term support rests at 12460 which is defined by the congestion range lows of 25 Mar/23 May 2019 and close to the 50% Fibonacci retracement of the major up move from 04 Jan low to 05 Nov 2019 high.
Charts are from eSignal
This report is intended for general circulation only. It should not be construed as a recommendation, or an offer (or solicitation of an offer) to buy or sell any financial products. The information provided does not take into account your specific investment objectives, financial situation or particular needs. Before you act on any recommendation that may be contained in this report, independent advice ought to be sought from a financial adviser regarding the suitability of the investment product, taking into account your specific investment objectives, financial situation or particular needs.
GAIN Capital Singapore Pte. Ltd., may distribute reports produced by its respective foreign entities or affiliates within the GAIN Capital group of companies or third parties pursuant to an arrangement under Regulation 32C of the Financial Advisers Regulations. Where the report is distributed to a person in Singapore who is not an accredited investor, expert investor or an institutional investor (as defined in the Securities Futures Act), GAIN Capital Singapore Pte. Ltd. accepts legal responsibility to such persons for the contents of the report only to the extent required by law. Singapore recipients should contact GAIN Capital Singapore Pte. Ltd. at 6826 9988 for matters arising from, or in connection with the report.
In the case of all other recipients of this report, to the extent permitted by applicable laws and regulations neither GAIN Capital Singapore Pte. Ltd. nor its associated companies will be responsible or liable for any loss or damage incurred arising out of, or in connection with, any use of the information contained in this report and all such liability is hereby expressly disclaimed. No representation or warranty is made, express or implied, that the content of this report is complete or accurate.
GAIN Capital Singapore Pte. Ltd. is not under any obligation to update this report.
Trading CFDs and FX on margin carries a high level of risk that may not be suitable for some investors. Consider your investment objectives, level of experience, financial resources, risk appetite and other relevant circumstances carefully. The possibility exists that you could lose some or all of your investments, including your initial deposits. If in doubt, please seek independent expert advice. Visit cityindex.com.sg for the complete Risk Disclosure Statement.
Cryptocurrencies are not legal tender currency and trading of derivatives on Cryptocurrencies are currently not covered under any regulatory regime in Singapore. Consequently, investors should be aware they do not have protection under the Securities and Futures Act (Cap. 289). Please ensure that you are fully aware of the risks.