ftse china a50 weekly outlook for 24 aug to 28 aug potential snap back rally above 8000 support 1115
(Click to enlarge charts) What happened earlier The China A50 Index (proxy for the FTSE China A50) has failed to break above the 11480 upside […]
(Click to enlarge charts) What happened earlier The China A50 Index (proxy for the FTSE China A50) has failed to break above the 11480 upside […]
The China A50 Index (proxy for the FTSE China A50) has failed to break above the 11480 upside trigger level and continued to tumble and it is now challenging the lower limit of the key long-term support at 9700. Since the June 2015 high of 14990, the Index has recorded a horrendous decline of 45%
*The long-term support of 9700 is being derived from the weekly chart, thus we need to have a weekly close below 9700 in order to validate a further bearish movement.
Pivot (key support): 8000
Resistance: 9700 & 10180
Next support: 7130
Current technical elements and intra-market correlation are advocating for a potential “snap-back” rally above the 8000 weekly pivotal support towards 9700 and even 10180.
On the contrary, failure to hold above the 8000 pivotal support is likely to see the continuation of the waterslide to target the mega long-term trendline support in place since May 2005 at 7130.
Source: Charts are from eSignal & City Index Advantage Trader
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