FTSE China A50 index ST: the RSI is overbought

CHINA50

Trading Central 2021-01-13 07:39:04

Our pivot point stands at 17919.90.

Our preference: the upside prevails as long as 17919.90 is support.

Alternative scenario: the downside breakout of 17919.90 would call for 17384.32 and 17065.17.

Comment: the RSI is above 70. It could mean either that the index is in a lasting uptrend or just overbought and therefore bound to correct (look for bearish divergence in this case). The MACD is positive and above its signal line. The configuration is positive. FTSE China A50 index is above its 20 and 50 period moving average (respectively at 17526.73 and 16957.53).

Supports and resistances:

20620.86 **

20290.77 *

19960.69 **

19630.60

18970.43 last

18130.83

17919.90 **

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