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In this comprehensive analysis, Ultima Markets brings you an insightful breakdown of the China A50 for OCT 29th 2024.
Key Takeaways
PBC strengthens financial support: The People’s Bank of China aims to reduce the financing cost of the real economy and strengthen financial support for the real economy through measures such as lowering the reserve requirement ratio and interest rate expectations, reducing the interest rate of existing mortgage loans, and launching new monetary policy tools to support the capital market.
Sentiment warms up: The Chinese government’s recent continuous “policy combination punches” have been intensively implemented, reflecting the decision-makers’ active response to the economic situation. At present, the market risk appetite has been rapidly restored. With the economic recovery and the warming of corporate profit expectations, coupled with the improvement of the external environment after the Fed’s interest rate cut cycle, the A-share recovery is expected to continue.
Technical Analysis
Daily Chart Insights
(China A50 Daily Price Chart, Source: Ultima Markets MT4)
Stochastic oscillator: The indicator leaves the oversold area and sends a bullish signal. The fast line and the slow line run almost synchronously, suggesting that the current exchange rate fluctuation is small. It is worth noting that the fast line has recently shown signs of accelerating upward, and attention should be paid to whether there are long opportunities in the short term.
Resistance price: The price of FTSE A50 continues to fluctuate and adjust below the resistance line of 13684.0, while the moving average group below is already in a bullish arrangement. The market price may break through the resistance line after stepping back on the moving average at any time. The next resistance target is the 14226.0 horizontal price, and the market price still has the probability of continuing to fall before breaking through the resistance.
H1 Chart Insights
(China A50 H1Price Chart, Source: Ultima Markets MT4)
ATR: Based on the current ATR real average volatility is getting lower and lower, the market price has the probability of breaking through at any time. Short-term volatility has been continuously lower than the long-term average. Once the short-term ATR is enlarged and stands above the long-term volatility, a clear trend may come.
Downward trend line: The market price is suppressed by two downward trend lines. Yesterday, A50 clearly broke through the first downward trend line. Before that, the market price has never been able to effectively stand above the trend line. Despite this, the overall volatility has not been clearly enlarged, so this breakthrough is still in doubt. Pay attention to the price action of the market price approaching the second trend line.
Pivot Indicator
(China A50 M30 Price Chart, Source: Ultima Markets APP)
According to the Ultima Markets APP, the central price of the day is established at 13430.00,
Bullish Scenario: Bullish sentiment prevails above 13430.00, first target 13670.00, second target 13770.00;
Bearish Outlook: In a bearish scenario below 13430.00, first target 13350.00, second target 13280.00.
Conclusion
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