FTSE China A50 future reached 1.618 projection of the Double Bottom pattern before retracing back below 13,500 resistance. Now testing support at around 13,064.
The trend is still bullish supported by positive RSI and another push to test the 13,500 resistance could be seen. However, if A50 closes below 13,055 the future could is likely to slide lower to 0.618 retracement at 12,865, possibly dipping down to the 0.786 retracement at 12,662
The rising 200 and 100 daily Moving Averages will offer some support.
Medium-term the A50 had been rejected around 13,500 which could be a signal for the A50 to resume down trend. Weekly RSI is showing negative sentiment underlining the bearish scenario. Strong support around 12,200
To confirm a bullish trend a close above 13,522 is needed.