Comprehensive A50 Analysis for December 27, 2023

In this comprehensive analysis, Ultima Markets brings you an insightful breakdown of the ChinaA50 for 27th December 2023. 

A50 Analysis Key Takeaways 

• Confidence in shares collapsed: The Shanghai Stock Exchange Index fell below 2,900  yesterday, setting the lowest closing price in 2023. Due to the Christmas holiday, trading volume was low. At present, investor sentiment has dropped to freezing point and market confidence has collapsed. 
• The depression of China shares: Since the current valuation is at a low value, the current price-to-earnings ratio of the CSI 300 is cheaper than 90% of the time in history. The possibility of an early rise in the FTSE A50 index cannot be ruled out. 

A50 Technical Analysis 

A50 Daily Chart Insights

• Stochastic Oscillator: After the indicator issued a long signal last week, it has formed a bottom divergence pattern in conjunction with the market price. This implies that the current A50 is currently oversold and has rebounded. 
• Price Action: The market price formed a bullish bar on December 21st, and a doji bar was formed after the market broke through the 7-day moving average. If the market price finally breaks through the high point of the doji bar, you can pay attention to the opportunity to rebound and go long. 

A50 1-hour Chart Analysis

• Stochastic Oscillator: The indicator sends a short signal. Since the daily chart is still in a downward trend, long opportunities need to wait for the short power to subside before stepping in. Wait for the indicator to send a long signal and observe whether there are long opportunities. 
• Fibonacci retracement level: The upward trend since December 21 is the benchmark. The current decline is temporarily looking at the 61.8% Fibonacci retracement level. This target level is also the lower edge of the downward channel line. If it accelerates below the channel line, you will need to continue to wait. 

A50 Trading Central Pivot Indicator

• According to the trading central in Ultima Markets APP, the central price of the day is established at 11220.00, 
• Bullish Scenario: Bullish sentiment prevails above 11220.00, first target 11280.00, second target 11315.00; 
• Bearish Outlook: In a bearish scenario below 11220.00, first target 11102.50, second target 11067.50. 

Conclusion