China A50 Index (Short Term): Continuation of Rebound Expected
Medion Jim August 24, 2020 10:47 AM
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%
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
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