- ChinaA50 reversed from resistance area
- Likely to fall to 15750.00
ChinaA50 index recently reversed down from the resistance area lying at the intersection of the resistance level 16500,00, upper daily Bollinger Band and the resistance trendline of the daily up channel from the end of September. The price today opened below the earlier powerful resistance level 16310.00 (which stopped the sharp daily uptrend in July) – which is the bearish sell signal for this index. ChinaA50 is currently approaching the support trendline of the aforementioned up channel.
If the current risk-off sentiment persists – ChinaA50 is likely to break the nearby up channel support trendline, intersecting with the round support level 16000.00 – with the next downward target set at the support level 15750.00. Alternatively, the index should re-test the resistance level 16310.00.