Uncertainty around Beijing’s new regulatory outlook and Asia’s coronavirus pandemic problem continue to pressurize Asian indices on Wednesday, ahead of the FOMC decision.
Asian indices have been under pressure when a leaked document showed that Beijing looks set to roll out a series of regulations targeting the for-profit private education sector. Several affected companies are listed in indices across Asia, and at least two are trading on US exchanges.
The Sensex index fell 0.26% on Wednesday to mark three consecutive losing sessions. The Sensex was trading much lower at a point in the trading session, but new demand at a support level kept prices within the range seen on the daily chart.
Wednesday’s price movement found support at the 51772 price mark (1/21 June lows) before fresh demand caused a bounce on the daily candle. This bounce keeps the price range-bound with 51772 as the floor and 53349 as the ceiling.
A break of price above the ceiling takes the Sensex price mark to 54000 (50% Fibonacci extension from the 30 October – 16 February – 22 April price swing. Above this price mark, a potential future target lies at 55632.
On the other hand, a breakdown of the floor of this range opens the door towards 50389 (29 April high and 25 May low), with 49552 serving as additional price support.
