Further to our longer-term analysis, the daily CHN50 chart is trading in its bullish area between the upper blue and red bands. Maintaining the upper channel increases the likelihood of price appreciation. The red Bollinger bands are moving in opposite directions, which shows a growing volatility. The hourly chart shows the stochastic has crossed up (aqua ellipse). A move towards the 80+ region (blue arrow) will suggest a positive momentum. A cross by the trend-following EMAs (black ellipse) and the development of angle and separation to the upside will reinforce this.
Senior Market Specialist
Russell Shor joined FXCM in October 2017 as a Senior Market Specialist. He is a certified FMVA® and has an Honours Degree in Economics from the University of South Africa. Russell is a full member of the Society of Technical Analysts in the United Kingdom. With over 20 years of financial markets experience, his analysis is of a high standard and quality.