CHINA A50 on the 1W MA100 after 2.5 years! Ultimate Bull test!

3 мая

When we looked at the China A50 index (CN50) last year (December 21 2023, see chart below), we got the best buy entry possible on more than 1 year span:

Our long-term Target at the time of 13000 is almost hit but it now time to re-evaluate our perspective as the index not only hit the top of its almost 2-year Falling Wedge but more importantly made contact with the 1W MA100 (green trend-line) for the first time in almost 2.5 years (since the week of December 28 2021).

This is the ultimate test for the Chinese market. A closing above that Resistance cluster, will turn us bullish again, targeting the 1W MA200 (orange trend-line) at 14250. Until that closing happens, we turn bearish on the medium-term, targeting 11850 (just above the 0.5 Fibonacci retracement level).

It has to be mentioned that the 1W RSI has already made a bullish break-out above its 3-year Lower Highs trend-line, potentially hinting finally towards a long-term trend change to bullish.

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