Asian Tech Rally with China in Decline
Asian stock markets rallied on Monday, boosted by expectations of possible rate cuts from the Federal Reserve. The technology sector led the gains, with Japan's Nikkei 225 rising 2.2%, and South Korea's KOSPI and Hong Kong's Hang Seng up about 1%. A solid close on Wall Street and signs of slowing inflation in the U.S. also benefited Asian markets. However, Chinese stocks remained laggards, with the CSI 300 and Shanghai Composite falling 0.4% and 0.1%, respectively, due to concerns about China's economic slowdown and political uncertainty in the U.S. Investors await key economic data from China this week for more clues on business activity. Other Asian markets, such as Australia's ASX 200 and Japan's TOPIX index, also posted gains.
Looking at the chart, the A50 index gave us downside hints as early as the 22nd of this month. And at the moment the spread is located in a strong support zone, which if pierced could plunge in the direction of its lows at 10,701 points. This is not likely to happen as the current POC is at 12,200 points and the RSI is oversold at 31.05%. Therefore, it is likely that the index will start a bullish run in the direction of the current average started at the beginning of the year.
Ion Jauregui – ActivTrades Analyst
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The information provided does not constitute investment research. The material has not been prepared in accordance with the legal requirements designed to promote the independence of investment research and such should be considered a marketing communication.
All information has been prepared by ActivTrades ("AT"). The information does not contain a record of AT's prices, or an offer of or solicitation for a transaction in any financial instrument. No representation or warranty is given as to the accuracy or completeness of this information.
Any material provided does not have regard to the specific investment objective and financial situation of any person who may receive it. Past performance is not reliable indicator of future performance. AT provides an execution-only service. Consequently, any person acing on the information provided does so at their own risk.
Looking at the chart, the A50 index gave us downside hints as early as the 22nd of this month. And at the moment the spread is located in a strong support zone, which if pierced could plunge in the direction of its lows at 10,701 points. This is not likely to happen as the current POC is at 12,200 points and the RSI is oversold at 31.05%. Therefore, it is likely that the index will start a bullish run in the direction of the current average started at the beginning of the year.
Ion Jauregui – ActivTrades Analyst
*******************************************************************************************
The information provided does not constitute investment research. The material has not been prepared in accordance with the legal requirements designed to promote the independence of investment research and such should be considered a marketing communication.
All information has been prepared by ActivTrades ("AT"). The information does not contain a record of AT's prices, or an offer of or solicitation for a transaction in any financial instrument. No representation or warranty is given as to the accuracy or completeness of this information.
Any material provided does not have regard to the specific investment objective and financial situation of any person who may receive it. Past performance is not reliable indicator of future performance. AT provides an execution-only service. Consequently, any person acing on the information provided does so at their own risk.
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