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
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Open real 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
