China A50 Index is trading below its upward trend line on a 4 hour time frame. The index has pierced the Bollinger band and it shows that the volatility is high and it is trading away from its 20 day moving average. We are also trading below the 100 day (shown in red) and the 50 day (shown in yellow) moving averages and this confirms that the bears are in control of the price. We are near the small area of support and we have also pierced the bollinger band, this could push the price higher however, any upward move could be capped by moving averages.
The RSI is trading near the oversold region and this could also move the price higher as well because extreme readings are considered as an opportunity to buy.
9551- 9666 Support Zone
10713- 10597 Resistance Zone