- Chinaa50 reversed from support area
- Likely to rise to 17000.00
Chinaa50 index recently reversed up from the support zone located between the major support level 16500.00 (former support from the end of November and the major resistance from the start of July), lower daily Bollinger Band and the 50% Fibonacci correction of the previous sharp upward impulse from the end of October. The upward reversal form this support zone started the active short-term correction (b) – which belongs to wave 4 from the end of last month.
Given the clear daily uptrend and the return to the risk-on sentiment on expectation of less tension between USA and China after Biden starts his presidency – Chinaa50 is expected to rise further in the active impulse wave (5) toward the next round resistance level 17000.00 (target price for the completion of the active (b)).