China A50 Index: Bullish Bias above 15380
Medion Jim October 27, 2020 2:35 AM
China A50 fell 1.8% on Monday as the global market drifted lower on the surge of coronavirus cases.
China A50 fell 1.8% on Monday as the global market drifted lower on the surge of coronavirus cases. Kweichow Moutai (600519), one of the heavy weight index stocks, reported that 3Q net income grew 6.7% on year to 11.2 billion yuan on revenue of 23.9 billion yuan, up 7.2%. The company dropped 4.2% after the release of its 3Q result.
Investors should focus on the official October manufacturing PMI (vs 51.3 expected) and non-manufacturing PMI (vs 56.1 expected), which will be released on Saturday.
From a technical point of view, the index remains holding above both 20-day and 50-day moving averages after breaking above its declining trend line drawn from July's top. The relative strength index is also supported by a rising trend line drawn from February.
Bullish readers could set the nearest support level at 15380, while resistance levels would be located at 16485 and 17550.
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.