China A50 Index

Near Term (Basis Daily Continuation Chart): Bearish

Thursday’s index trade was a quick recovery back higher after the potentially devastating downside breakout through the bottom of the channel the market is working from. We would note that the reaction higher ran into and was stopped at the 100-day moving average resistance which we feel is an important level for Friday’s weekend-ending trade. We feel a Friday close through the 100-ay MA is more important directionally than during the rest of the early part of the week’s trading. This makes for an important trading day on Friday…extend on up through the 100-day MA on the daily chart and back inside the channel on the weekly chart as a small positive, or fail on the bounce here and close the week poorly to suggest a bigger selloff into the end of the month as increased long liquidation books long-term profits and stands aside here. 

Long Term: Neutral, weakening

Our long-term technical outlook is neutral. Major resistance is 10,660.0, while support is 9,780.0 and then 9,457.5.2017-04-20 16_33_12-042017_SF_Daily_Commentary_China_A50_Index [Read-Only] - Microsoft Word2017-04-20 16_33_07-042017_SF_Daily_Commentary_China_A50_Index [Read-Only] - Microsoft Word

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