Hang Seng Index: Watch the Key resistance level at 24335
Medion Jim October 6, 2020 2:25 AM
The Hong Kong Hang Seng Index rallied 1.3% yesterday, lifted by heavily weighted stock, such as Tencent, HSBC Alibaba and AIA.
The Hong Kong Hang Seng Index rallied 1.3% yesterday, lifted by heavily weighted stocks, such as Tencent, HSBC, Alibaba and AIA. However, 17 index composite stocks remained down. In addition, the volume of the Hong Kong market is below HK$100 billion, which is relatively low to normal trading days. It suggested that the rise of the Hang Seng Index could not reflect the change of market sentiment.
In fact, investors should focus on the price action after the re-open of the China market as the Hong Kong market should have more trading volume to reflect the sentiment of most market participants.
From a technical point of view, the index posted a rebound from 23125 after hitting 61.8% fibonacci retracement level on a daily chart, but it is still capped by a declining 20-day moving average.
As long as the resistance level at 24335 is not surpassed, the index could consider a return to 23125 before dropping to the next support level at 22520. Alternatively, a break above 24335 would call for a stronger rebound to 25000.
Source: GAIN Capital, TradingView
Disclaimer: The information on this web site is not targeted at the general public of any particular country. It is not intended for distribution to residents in any country where such distribution or use would contravene any local law or regulatory requirement. The information and opinions in this report are for general information use only and are not intended as an offer or solicitation with respect to the purchase or sale of any currency or CFD contract. All opinions and information contained in this report are subject to change without notice. This report has been prepared without regard to the specific investment objectives, financial situation and needs of any particular recipient. Any references to historical price movements or levels is informational based on our analysis and we do not represent or warranty that any such movements or levels are likely to reoccur in the future. While the information contained herein was obtained from sources believed to be reliable, author does not guarantee its accuracy or completeness, nor does author assume any liability for any direct, indirect or consequential loss that may result from the reliance by any person upon any such information or opinions.
Futures, Options on Futures, Foreign Exchange and other leveraged products involves significant risk of loss and is not suitable for all investors. Losses can exceed your deposits. Increasing leverage increases risk. Spot Gold and Silver contracts are not subject to regulation under the U.S. Commodity Exchange Act. Contracts for Difference (CFDs) are not available for US residents. Before deciding to trade forex and commodity futures, you should carefully consider your financial objectives, level of experience and risk appetite. Any opinions, news, research, analyses, prices or other information contained herein is intended as general information about the subject matter covered and is provided with the understanding that we do not provide any investment, legal, or tax advice. You should consult with appropriate counsel or other advisors on all investment, legal, or tax matters. References to Forex.com or GAIN Capital refer to GAIN Capital Holdings Inc. and its subsidiaries. Please read Characteristics and Risks of Standardized Options.