ftsexinhua china a50 weekly outlook for 26 jan to 30 jan mixed elements turn neutral between 12065 1

What happened last week The FTSE/Xinhua China A50 has surpassed the weekly pivotal resistance at 11100, thus invalidated our expected setback scenario. Please click on […]


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By :  ,  Financial Analyst
January 26, 2015 6:36 PM
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By :  ,  Financial Analyst

China A50 Index (weekly)-weekly forecast 26 Jan 2015

China A50 Index (daily)-weekly forecast 26 Jan 2015

China A50 Index (4 hour)-weekly forecast 26 Jan 2015What happened last week

The FTSE/Xinhua China A50 has surpassed the weekly pivotal resistance at 11100, thus invalidated our expected setback scenario. Please click on this link for more details on our previous outlook.

Key elements 

  • The long-term key resistance zone for the Index stands at 13270 (August 2009 swing high)/133880 which also confluences with the 1.00 Fibonacci projection from 20 Oct 2008 low to 03 August 2009 high (see weekly chart).
  • Last week price action has formed a weekly bearish “Hanging Man” candlestick pattern (see weekly chart).
  • The long-term Stochastic oscillator has just exited from its overbought region (see weekly chart).
  • The intermediate term RSI oscillator is right below its trendline resistance but still holding above its support (see daily chart).

Key levels (1 to 3 weeks)

Resistance: 12040/12065 & 12950/13270

Support: 11000 & 10030

Conclusion

Elements are mixed, thus we turn neutral for this week. Only a clear break below 11000 is likely to validate a decline towards 10030.

On the other hand, a break above 12040/12065 is likely to see a squeeze up to towards the long-term significant resistance at 12950/13270.

Source:  Charts are from City Index Advantage & eSignal

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.

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