Shanghai Composite hits 8.5-month high, 50- & 100-day MA bull cross confirmed

Omkar Godbole FXStreet Contributor

The Shanghai Composite - China's benchmark equity index - has hit 8.5-month high on US-China trade optimism.

As of writing, the index is trading at 3,068 - the level last seen on June 13, 2018. The gains seen today are likely triggered by Wall Street Journal reports stating that the US and China are closing on a trade deal.

Chinese stocks have gained more than 25 percent in the last two months on China's stimulus efforts and easing US-China trade tensions and could rise further, as indicated by the bullish technical development.

The 50-day moving average (MA) has crossed the 100-day MA from below, confirming a billish crossover.

Author

Omkar Godbole

FXStreet Contributor

Omkar Godbole, editor and analyst, joined FXStreet after four years as a research analyst at several Indian brokerage companies.

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