China A50 Index Challenges Recent High On Better Than Expected PMI data

China A50 Index (Intraday) Challenges Recent High On Better Than Expected PMI data

China A50 Index rose after announcing better than expected PMI data. China's June official Manufacturing PMI rose to 50.9 in June (50.4 expected, 50.6 in May) and Non-manufacturing PMI climbed to 54.4 (52.1 expected, 53.6 in the previous month), according to the government.

Source: Trading Economic (Non-manufacturing PMI)

The official Non-manufacturing PMI gradually improved from February and reached a similar level before the outbreak of COVID-19. It indicates that China's non-manufacturing activities are back to normal.

On a 1-hour chart, the index prices are challenging multi-high resistance levels at 13972. Currently, it is trading within the ascending triangle.

Besides, the RSI broke above the declining trend line drawn from the mid of June, suggesting the upside momentum for the prices.

A break above 13972 would enhance the bullish outlook and would trigger rise to the resistance levels at 14137 (161.8% retracement level) and 14315 (223.6% retracement) respectively.

Bullish readers could set the support level at 13760 (the previous low). A break below this level may bring a return 13680 (the low of June 23).

Sources: GAIN Capital, TradingView

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