CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 69% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.
Open account
☰
CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 69% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.
Open account
✖

China A50 Index and CSC Financial Start Their New Upmove

Article By: ,  Financial Analyst
July 1, 2020 11:56 PM

China A50 Index and CSC Financial (6066.HK) Start Their New Upmove

Yesterday, Caixin China manufacturing PMI rose to 51.2 in June (50.5 expected) from 50.7 in May. Key findings included: "Output expands again as sector continues to recover from COVID-19 crisis (...) Total new work increases for the first time since January. (...) but external demand remains subdued."


Source: Trading Economics (Caixin China manufacturing PMI)

In the above chart, Caixin China manufacturing PMI has shown a recovery from March low. The data suggested that China's manufacturing activities are improving and expanding after the outbreak of COVID-19.

China A50 Index: Furthe Upside

China A50 Index is lifted by the solid Caixin China manufacturing PMI data. Technically, the Index broke above the consolidation zone between 13980 and 13480 on the daily chart, suggesting the resumption of the uptrend since March low.


The RSI is above its overbought level at 70, but has not displayed any reversal signal.

Bullish readers should set the support level at 13670 (the low of June 23), while resistance levels would be located at 14700 (the high of January) and 15550 (127.2% retracement)


Source: GAIN Capital, TradingView


Hang Seng Index: Waiting for the breakout signal

Hong Kong's Hang Seng Index jumped more than 1% after the holiday of SAR Establishment Day. In fact, The technical outlook Hang Seng Index is still mixed as the prices are trading within the narrow zone, which is drawn by a declining trend line from March and a rising trend line from May.

Investors should focus on the breakout signal to confirm the resumption of the uptrend. Only a break above 25050 (the high of June 24) would trigger a rise to fill the gap at 26000.

Alternatively, a break below 23700 (the low of June 15) would continue the choppy trading and might return to 22500 (the low of May).


Source: GAIN Capital, TradingView


CSC Financial(6066.HK): Rounded bottom breakout

From a technical point of view, investment management group CSC Financial (6066.HK) is gathering upside momentum as shown on the daily chart. In fact, it has broken above its previous double-top, marked in June this year and February last year, after forming a rounded bottom pattern. Bullish investors may consider $8.00 as the nearest support, with prices trending to test the 1st and 2nd resistance at $9.75 and $10.60 respectively. Alternatively, a break below $8.00 is likely to trigger a pull-back to the next support at $7.40.


Source: GAIN Capital, TradingView

StoneX Financial Ltd (trading as “City Index”) is an execution-only service provider. This material, whether or not it states any opinions, is for general information purposes only and it does not take into account your personal circumstances or objectives. This material has been prepared using the thoughts and opinions of the author and these may change. However, City Index does not plan to provide further updates to any material once published and it is not under any obligation to keep this material up to date. This material is short term in nature and may only relate to facts and circumstances existing at a specific time or day. Nothing in this material is (or should be considered to be) financial, investment, legal, tax or other advice and no reliance should be placed on it.

No opinion given in this material constitutes a recommendation by City Index or the author that any particular investment, security, transaction or investment strategy is suitable for any specific person. The material has not been prepared in accordance with legal requirements designed to promote the independence of investment research. Although City Index is not specifically prevented from dealing before providing this material, City Index does not seek to take advantage of the material prior to its dissemination. This material is not intended for distribution to, or use by, any person in any country or jurisdiction where such distribution or use would be contrary to local law or regulation.

For further details see our full non-independent research disclaimer and quarterly summary.

CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 69% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money. CFD and Forex Trading are leveraged products and your capital is at risk. They may not be suitable for everyone. Please ensure you fully understand the risks involved by reading our full risk warning.

City Index is a trading name of StoneX Financial Ltd. Head and Registered Office: 1st Floor, Moor House, 120 London Wall, London, EC2Y 5ET. StoneX Financial Ltd is a company registered in England and Wales, number: 05616586. Authorised and regulated by the Financial Conduct Authority. FCA Register Number: 446717.

City Index is a trademark of StoneX Financial Ltd.

The information on this website is not targeted at the general public of any particular country. It is not intended for distribution to residents in any country where such distribution or use would contravene any local law or regulatory requirement.

© City Index 2024