CHNComp rose over 4.0% on Tuesday, closing at their highest levels in almost two months, as the warmer U.S.-China relationship after the Xi-Biden meeting overshadowed disappointing monthly activity data from the world's second biggest economy. Leaders of both countries during the G20 Summit in Indonesia called for reduced tensions between both nations. Moreover, Chinese stock advanced despite a raft of disappointing domestic economic data highlighted by industrial production and retail sales figures that missed expectations in October. Moreover investors are still expecting that Beijing will increase stimulus measures and ease COVID restrictions to support the struggling economy.
CHNComp rose sharply on Tuesday and reached its highest level since the end of September. If current sentiment prevails, nearest resistance to watch can be found at 6790 pts which is marked with previous price reactions and upper limit of the descending channel. On the other hand, if sellers manage to regain control, the first line of support is located at 5900 pts. Source: xStation5
Start investing today or test a free demo
Open account Try demo Download mobile app Download mobile appThis upbeat sentiment provided fuel for Chinese stocks listed in the US which are trading sharply higher in pre-open. Alibaba (BABA.US) and Tencent (TME.US) shares jumped over 10% before the opening bell while Bilibili (BILI.US) stock surged over 14%.
Shares of Taiwan Semiconductor Manufacturing (TSM.US) rose nearly 8.0% following the news that Warren Buffett added a stake of about $5 billion to its investments in the third quarter.
Alibaba (BABA.US) stock jumped above major resistance at $74.20 in premarket which coincides with the downward trendline and 23.6% Fibonacci retracement of the last downward wave. If current sentiment prevails, upward move may accelerate towards next resistance at $84.30. Source: xStation5
This content has been created by XTB S.A. This service is provided by XTB S.A., with its registered office in Warsaw, at Prosta 67, 00-838 Warsaw, Poland, entered in the register of entrepreneurs of the National Court Register (Krajowy Rejestr Sądowy) conducted by District Court for the Capital City of Warsaw, XII Commercial Division of the National Court Register under KRS number 0000217580, REGON number 015803782 and Tax Identification Number (NIP) 527-24-43-955, with the fully paid up share capital in the amount of PLN 5.869.181,75. XTB S.A. conducts brokerage activities on the basis of the license granted by Polish Securities and Exchange Commission on 8th November 2005 No. DDM-M-4021-57-1/2005 and is supervised by Polish Supervision Authority.
