ftsexinhua china a50 weekly outlook for 02 feb to 06 feb further potential downside below 11300 1421

What happened last week The FTSE/Xinhua China A50 has broken below the lower limit of the neutrality range at 11000 and drifted lower. Please click […]

What happened last week

The FTSE/Xinhua China A50 has broken below the lower limit of the neutrality range at 11000 and drifted lower. Please click on this link for more details on our previous weekly outlook.

Key elements

The 20-day Moving Average is acting as a resistance at around 10960 (see daily chart).
The intermediate term RSI oscillator is still below its resistances and still “home” for further downside before reaching the trendline support (see daily chart).
The 9350/9200 support confluences closely with a Fibonacci cluster and the 100-day Moving Average (see daily & 4 hour charts).
The short-term Stochastic oscillator has just exited from its oversold region which suggests a potential short-term rebound is round the corner (see 4 hour char).

Key levels (1 to 3 weeks)

Intermediate resistance: 10960

Pivot (key resistance): 11300

Support: 10030 & 9350/9200

Next resistance: 12040/12065

Conclusion

A break below 11000 seen last week has validated further downside potential for the Index. Right now, a potential short-term rebound (observation from the 4 –hour Stochastic) is expected towards the intermediate resistance at 10960 with a maximum limit set at the pivotal resistance of 11300 before another potential downside movement materialises to test the 10030 support.

However, a break above 11300 is likely to see a push up to retest the January 2015 swing high at 12040/12065.

Disclaimer

The information contained in this material 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. All queries regarding the contents of this material are to be directed to City Index Asia Pte Ltd.

Latest market news

S&P500 Forecast: SPX rebounds as big tech recovers & inflation is in focus

Yesterday 01:32 PM

Gold forecast: Metal aims to recover with core PCE data on tap

Yesterday 09:35 AM

USDJPY Forecast: Key Levels for BOJ and FOMC Week

Yesterday 07:23 AM

FOMC, BOJ, BOE take the reigns of market drivers: The Week Ahead

Yesterday 04:48 AM

Stabilisation in commodity, US stock futures bode well for AUD/USD longs

Yesterday 12:17 AM

USD/JPY selling recedes ahead of PCE inflation, crude oil slips in a gain

July 25, 2024 10:39 PM

Open an account today

Experience award-winning platforms with fast and secure execution.

Open account

Web Trader platform

Our sophisticated web-based platform is packed with features.

Learn more

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.

StoneX Financial Pte. Ltd., may distribute reports produced by its respective foreign entities or affiliates within the StoneX 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), StoneX Financial 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 StoneX Financial 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 StoneX Financial 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.

StoneX Financial 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 www.cityindex.com/en-sg/terms-and-policies for the complete Risk Disclosure Statement.