Hong Kong Hang Seng Index: Upside Breakout
George Lam November 24, 2020 9:42 PM
From a technical point of view, Hong Kong Hang Seng Index has gathered more upside momentum as investors are looking forward to post-Covid-19 economic recovery.
Market sentiment was lifted by promising Covid-19 vaccine trail results from Pfizer, Moderna and AstraZeneca, as investors are looking forward to post-Covid-19 economic recovery. On the other hand, China's November official Manufacturing PMI and Caixin Manufacturing PMI will be released next Monday (Nov 30) and Tuesday (Dec 1), both expected to hold at recent highs.
On a daily chart, Hong Kong Hang Seng Index has gathered more upside momentum as it has just broken above a bullish flag pattern. The 20-day moving average has moved further above the 50-day one. The level at 25,750 may be considered as the nearest support, while the 1st and 2nd resistance are expected to be located at 27,620 and 28,600 respectively.
Source: GAIN Capital, TradingView
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