China A50 Index (Intraday): Supported by a Rising Trend line
Medion Jim August 3, 2020 10:59 AM
Caixin China PMI Manufacturing PMI rose to 52.8 in July (vs 51.1 expected, 51.2 in June). Key findings included: "Output and new orders both rise at fastest rates for nine and-a-half years (...) Export sales fall at softer pace (...) Inflationary pressures pick up."
Caixin China Manufacturing PMI rose to 52.8 in July (vs 51.1 expected, 51.2 in June). Key findings included: "Output and new orders both rise at fastest rates for nine and-a-half years (...) Export sales fall at softer pace (...) Inflationary pressures pick up."
Source: Trading Economic
In the above chart, the PMI data shows a gradual improvement and even breaks the level before the outbreak of coronavirus. It suggests that the manufacturing activity of China is back to normal.
From a technical point of view, the China A50 Index is supported by a rising trend line in 1-hour chart, suggesting the bullish outlook.
Currently, the index prices stand above both 20-period and 50-period moving averages.
Bullish readers could set the support level at the previous low at 15110, while the resistance levels would be located at 15480 (reaction high of July 31) and 15815 (reaction high of July 22) respectively.
Source: GAIN Capital, TradingView
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