The ChinaH Index is currently trading at $8,390, after recently rejecting the key resistance level of $9,200, a historically significant zone last tested in 2021. Despite this rejection, the index remains well-positioned within a strong and intact bullish channel, signaling long-term upward momentum.
Current Setup:
We are now observing a short-term relief bounce from $8,390, with potential to retest the $8,700 area. This move is part of a broader technical structure that suggests a healthy pullback phase before resuming long-term growth.
Pullback Scenario:
Following the potential retest of $8,700, the index may enter a correction phase, targeting $7,600 as a core support level—this zone previously acted as resistance in 2022 and is likely to serve as strong structural support heading into mid-2025.
Before reaching $7,600, the first interim support sits at $8,200, a level that previously served as support in 2020 and triggered the recent bounce. If $8,200 fails to hold during the retracement, a deeper correction toward $7,600 would allow for stronger consolidation and improved structural health within the overall bullish channel.
Two Potential Bullish Scenarios After Pullback:
Continuation within the Current Bullish Channel:
A bounce from $7,600 would resume upward momentum.
Primary upside target: $9,700 – a key multi-year resistance zone from 2017–2020.
A clean breakout above $9,700 would confirm a long-term bullish breakout and shift market sentiment decisively.
Formation of a New Bullish Channel:
In the event of prolonged consolidation, price could range between $7,100–$8,700 from September to December 2025.
A breakout in January 2026 would confirm a new ascending structure, offering a refreshed bullish path with long-term upside.
Key Levels to Watch:
Resistance: $8,700 → $9,200 → $9,700 (Major Breakout Zone)
Support: $8,200 → $7,600 → $7,100 (Range Floor if prolonged consolidation)
Summary:
While short-term pullbacks may test market resilience, the underlying bullish structure remains intact. A correction to $7,600 could act as a launchpad for the next major leg higher. Whether through continuation in the current channel or the formation of a new one, the ChinaH Index presents multiple bullish pathways, with $9,700 being the key level that could signal a long-term shift in trend.
Patience and disciplined positioning in the upcoming months will be crucial as we watch for confirmation of the next directional move.
Current Setup:
We are now observing a short-term relief bounce from $8,390, with potential to retest the $8,700 area. This move is part of a broader technical structure that suggests a healthy pullback phase before resuming long-term growth.
Pullback Scenario:
Following the potential retest of $8,700, the index may enter a correction phase, targeting $7,600 as a core support level—this zone previously acted as resistance in 2022 and is likely to serve as strong structural support heading into mid-2025.
Before reaching $7,600, the first interim support sits at $8,200, a level that previously served as support in 2020 and triggered the recent bounce. If $8,200 fails to hold during the retracement, a deeper correction toward $7,600 would allow for stronger consolidation and improved structural health within the overall bullish channel.
Two Potential Bullish Scenarios After Pullback:
Continuation within the Current Bullish Channel:
A bounce from $7,600 would resume upward momentum.
Primary upside target: $9,700 – a key multi-year resistance zone from 2017–2020.
A clean breakout above $9,700 would confirm a long-term bullish breakout and shift market sentiment decisively.
Formation of a New Bullish Channel:
In the event of prolonged consolidation, price could range between $7,100–$8,700 from September to December 2025.
A breakout in January 2026 would confirm a new ascending structure, offering a refreshed bullish path with long-term upside.
Key Levels to Watch:
Resistance: $8,700 → $9,200 → $9,700 (Major Breakout Zone)
Support: $8,200 → $7,600 → $7,100 (Range Floor if prolonged consolidation)
Summary:
While short-term pullbacks may test market resilience, the underlying bullish structure remains intact. A correction to $7,600 could act as a launchpad for the next major leg higher. Whether through continuation in the current channel or the formation of a new one, the ChinaH Index presents multiple bullish pathways, with $9,700 being the key level that could signal a long-term shift in trend.
Patience and disciplined positioning in the upcoming months will be crucial as we watch for confirmation of the next directional move.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.