China A50 breakout test looms at December highsChina A50 CFDFOREXCOM:CHINA50FOREXcomChina’s A50 index appears to be on a collision course with the swing high set in December last year, motoring higher like so many other Chinese indices. If we see a clean break of the level, there’s very little technically standing in the way of a potential move back towards the blow-off highs set in October 2024. 14,409 is the level in question, with the current trajectory putting it on track to be tested as soon as Tuesday. Should we see a break and close above it, or at least a definitive bullish move, longs could be established with a stop beneath for protection. 15,000 screens as an initial target simply because it’s a round number, along with 15,079—the 23.6% fib of the September–October surge last year. Beyond that, 15,200 looks to be the last level of any significance before the October 2024 swing high of 16,322. Of course, if the price cannot meaningfully clear 14,409, the setup could be flipped, with shorts set beneath the level with a stop above for protection. 14,185 and 13,700 screen as potential targets. MACD and RSI (14) are both generating bullish momentum signals, favouring a bias to buy dips and topside breaks rather than selling rallies. Good luck! DS