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


More from China A50

Disclaimer

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.