In this comprehensive analysis, Ultima Markets brings you an insightful breakdown of the China A50 for July 3, 2024.
Key Takeaways
- Difficulty in cutting interest rates: Although Fed Chair Jerome Powell did not provide clear indication for a rate cut in summer, he reiterates that there is significant progress in the labor market. However, recent data suggests otherwise with rising vacancies coupled with rising bank credits. Such a situation may prove to be difficult for the Feds to balance off inflation when interest rates are being reduced in the future.
- Volatility ahead due to statement release: Volatility is expected for the week as numerous companies will release their mid-term financial statements. As China A50 maintains at around 3,000-point mark, the index has substantial possibility to rebound from oversold region.
Technical Analysis
Daily Chart Insights
- Stochastic oscillator: The indicator forms bullish signal for the third time in the oversold region coupled with the emergence of bullish divergence. With recent attempts for a rebound, the index may advance further upwards in the short term.
- MA lines: Following recent attempts to rebound, the index is blocked by both 33-MA (red) and 65-MA (black) lines. It is suggested to wait for a clear signal, either a closure above or retracement before entering the market.
4-hour Chart Analysis
- Stochastic oscillator: The indicator shows possibilities of forming bearish signal as it enters oversold region, suggesting a slowdown in current bullish momentum.
- Resistance area: Following recent closure above 65-MA line (black), the index faces two important resistance – alternative downward trendline and major downward trendline. Both trendline may pose a significant threat to the current bullish bias.
- 123 rules: If the index closes above trendline, it may undergo a slight depreciation in short-term before continuing its major trend shift towards the upside in a typical 123 pattern rule.
Pivot Indicator
- According to the trading central in Ultima Markets APP, the central price of the day is established at 11980,
- Bullish Scenario: Bullish sentiment prevails above 11980, first target 12120, second target 12165;
- Bearish Outlook: In a bearish scenario below 11980, first target 11940, second target 11880.
Conclusion
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Comments, news, research, analysis, price, and all information contained in the article only serve as general information for readers and do not suggest any advice. Ultima Markets has taken reasonable measures to provide up-to-date information, but cannot guarantee accuracy, and may modify without notice. Ultima Markets will not be responsible for any loss incurred due to the application of the information provided.
