• ChinaA50 broke round resistance level 20000.00
• Likely to rise to resistance level 21000.00
ChinaA50 index continues to rise strongly after the price broke the round resistance level 20000.00 – which accelerated the active impulse waves (iii), 5 and (3). The breakout of the resistance level 20000.00 was preceded by the breakout of the resistance level 19000.00 (which is the upper border of the sideways price range inside which the index has been trading from the start of January.
Given the prevailing uptrend and the improvement in risk sentiment after the first phone conversation between USA and China leaders – ChinaA50 can be expected to rise further toward the next resistance level 21000.00 (target price for the completion of the active impulse waves (iii), 5 and (3)).