• ChinaA50 broke out of the sideways price range
• Likely to rise to resistance level 18500.00
ChinaA50 index recently broke sharply above the key resistance level 17665.00 (top of the sideways price range inside which the index has been trading from the end of March – as can be seen below). The lower boundary of this price ranges stands at the strong support level 16750.00 (which stopped the previous waves 3, 5, (2) and 2). The breakout of the resistance level 17665.00 accelerated the active impulse waves 5 and (3).
ChinaA50 index can be expected to rise toward the next resistance level 18500.00 (top of the previous minor correction 2 from March and the target for the completion of the active impulse waves 5 and (3).