China A50 Index CFD The uptrend remains

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By :  ,  Financial Analyst
On the economic front, China's Caixin Services PMI rose to 57.8 in November (56.4 expected) from 56.8 in October. Key findings included: "Substantial rise in business activity amid quickest increase in new work since April 2010 (...) Employment growth strongest since October 2010 (...) Input costs rise at sharpest pace for over a decade."

The sentiment of the China A50 Index could be affected by the global market. The movement of the U.S. market could give a hint whether the China A50 index can record a new 52-week high. Investor should await of the U.S. nonfarm payroll reports for trigger a momentum trade.


On a daily chart, the index is holding on the upside after breaking above the ascending triangle pattern. Currently, it is still trading above both 20-days and 50-day moving averages. The support level is raised to 16000, while index could expect a rise to the resistance level at 17550 and 18240.


Source: GAIN Capital, TradingView
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