Hang Seng Index CFD: Further upside expected

Hong Kong's Hang Seng Index are holding on the upside after posting a sharp rebound in September. The index has climbed 15% from September low.

Uptrend 2

Hong Kong's Hang Seng Index are holding on the upside after posting a sharp rebound in September. The index has climbed 15% from September low. During this rebound, the bank sector performs the best, HSBC (5) rebounds around 47% from the September low.

On the economic front, China's official manufacturing PMI rose to 52.1 in November (vs 51.5 expected, 51.4 in October), while non-manufacturing PMI increased to 56.4 (vs 56.0 expected, 56.2 in October). Both PMI data are better than expectation and suggests the China's economy are still expanding after the outbreak of the coronavirus.

On a daily chart, the Hang Seng index CFD challenges the high of July. The bullish cross between 20-day and 50-day moving averages has been identified. Bullish readers could set the support level at 25800, while resistance levels would be located at 28100 and 29200.

Source: GAIN Capital, TradingView

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