• ChinaA50 broke key resistance level 17125.00
• Likely to rise to 18000.00

ChinaA50 index continues to rise strongly after the price broke above the key resistance level 17125.00 (which was set as the likely upward target in our previous forecast for this index). The breakout of the resistance level 17125.00 accelerated the active impulse wave (iii) – which belongs to the longer-term nested upward impulse sequences 5 and (3). The price earlier broke the daily up channel from September – which also added to the bullish pressure on ChinaA50 index.

Given the clear uptrend that can be seen on the daily charts and the acceleration of the daily momentum – ChinaA50 is likely to rise further toward the next round resistance level 18000.00 (target price for the completion of the active minor impulse wave (iii)).