China A50 set for a corrective bounce?

The China A50 has rallied over 13% since the October low and has since retraced to the 61.8% Fibonacci level. An elongated bullish Pinbar formed yesterday which shows strong demand around the bullish engulfing candle and marking a potential swing low within a bullish retracement channel. We are now looking for a break above 12,350 to assume bullish continuation and a move back towards the 13,000 resistance zone.

This could be the final move of a 3-wave correction, before it reverts to its bearish trend.