FTSE CHINA A50 broke above its intermediate downtrend line, S1-S1 at 11250 today. Its immediate resistance is at 12000 and beyond that, at 12500 & 13000. However, this is likely to be a temporary bottom, as the MACD is still in negative territory while the -DMI is above the +DMI with strong trending ADX. Nonetheless, the -DMI is dipping while +DMI is rising, with potential for a crossover.
One can only hope that the Chinese stock market will find its bottom quickly and in the process, provides stability to the emerging markets and possibly the commodity complex.
Chart: FTSE CHINA A50's daily chart as at Aug 10, 2015 (Source: uk.investing.com)
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