China A50 Index Intraday Supported by a Rising Trend line

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By :  ,  Financial Analyst

China A50 Index (Intraday): Supported by a Rising Trend line

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

Related tags: China A50 Indices China PMI

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