A rally in CSI 300 has accelerated.....>

CHINA STOCKS: A rally in CSI 300 has accelerated over the last few sessions,

breaking out of an ascending channel drawn on the accompanying chart. The most

recent surge was underpinned by a decent pick up in volume. The move allowed the

index to punch through the 4,500 mark for the first time in five years and

attack the upper 3.0% Bollinger band at 4,577, which has proven resilient so

far. A break here would turn focus to the 5,000 level, a key psychological

resistance. Meanwhile, a pullback under Friday's peak at 4,420 would please

bears, opening the broken channel top at 4,267.

- See chart at: https://emedia.marketnews.com/marketnewsintl/CSI300.png

Similar bullish dynamics have played out in Shanghai Composite, which showed at

its best levels since Apr 2019 today. The last few sessions saw a dynamic rally

on a strong volume, which allowed the index to sever a channel top and penetrate

Mar 5 high (3,074) and Jan 14 high (3,127). Bulls look to take out 3,288, which

represents the high of Apr 8, 2019. Conversely, a retreat under Friday's high at

3,153 & Jan 14 high at 3,127 would give bears hopes for a deeper pullback.

- See chart at: https://emedia.marketnews.com/marketnewsintl/ShanghaiComp.png