China A50 Index and CSC Financial Start Their New Upmove
China A50 Index and CSC Financial (6066.HK) Start Their New Upmove
Source: Trading Economics (Caixin China manufacturing PMI)
In the above chart, Caixin China manufacturing PMI has shown a recovery from March low. The data suggested that China's manufacturing activities are improving and expanding after the outbreak of COVID-19.
China A50 Index: Furthe Upside
China A50 Index is lifted by the solid Caixin China manufacturing PMI data. Technically, the Index broke above the consolidation zone between 13980 and 13480 on the daily chart, suggesting the resumption of the uptrend since March low.
The RSI is above its overbought level at 70, but has not displayed any reversal signal.
Bullish readers should set the support level at 13670 (the low of June 23), while resistance levels would be located at 14700 (the high of January) and 15550 (127.2% retracement)
Source: GAIN Capital, TradingView
Hang Seng Index: Waiting for the breakout signal
Hong Kong's Hang Seng Index jumped more than 1% after the holiday of SAR Establishment Day. In fact, The technical outlook Hang Seng Index is still mixed as the prices are trading within the narrow zone, which is drawn by a declining trend line from March and a rising trend line from May.
Investors should focus on the breakout signal to confirm the resumption of the uptrend. Only a break above 25050 (the high of June 24) would trigger a rise to fill the gap at 26000.
Alternatively, a break below 23700 (the low of June 15) would continue the choppy trading and might return to 22500 (the low of May).
Source: GAIN Capital, TradingView
CSC Financial(6066.HK): Rounded bottom breakout
From a technical point of view, investment management group CSC Financial (6066.HK) is gathering upside momentum as shown on the daily chart. In fact, it has broken above its previous double-top, marked in June this year and February last year, after forming a rounded bottom pattern. Bullish investors may consider $8.00 as the nearest support, with prices trending to test the 1st and 2nd resistance at $9.75 and $10.60 respectively. Alternatively, a break below $8.00 is likely to trigger a pull-back to the next support at $7.40.
Source: GAIN Capital, TradingView
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