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

5月3日

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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