hang seng index daily outlook fri 16 oct further upside potential above 2280022620 support 158711201
<p>(Click to enlarge charts) What happened yesterday The Hong Kong 40 Index (proxy for the Hang Seng Index) has rallied as expected through the bullish […]</p>
Share this:
What happened yesterday
The Hong Kong 40 Index (proxy for the Hang Seng Index) has rallied as expected through the bullish breakout of its former short-term resistance at 22700/22630.
This morning, it has gapped up and almost hit our upside target at 23170 (printed a current high of 23152). Please click on this link for a recap on our previous daily outlook.
Key elements
- The Index is now approaching a significant medium-term resistance zone of 23500/24000 which is defined by the descending trendline joining the highs since 26 May 2015, close to the previous swing low of 08 July 2015 and the 38.2% Fibonacci retracement of the steep down move from 26 May 2015 high to the “Black Monday”, 24 August 2015 low.
- In the shorter-term, the aforementioned trendline resistance also confluences with the 1.00 Fibonacci projection from 29 September 2015 low to 06 October 2015 low @2pm at 23600.
- The hourly (short-term) Stochastic oscillator has just turned up near its oversold region and still has room for further potential upside before reaching its extreme overbought level. This observation suggests that upside momentum remains intact.
- The former short-term resistance (in dotted pink) is now acting as a pull-back support at 22620.
Key levels (1 to 3 days)
Intermediate support: 22800
Pivot (key support): 22620
Resistance: 23500/23600
Next support: 22260/22180 (weekly pivot)
Conclusion
Short-term technical elements remain positive. We have tightened the daily (short-term) pivotal support to 22620 for a potential direct rise to towards the key medium-term resistance at 23500/23600.
On the flipside, failure to hold above the 22620 short-term pivotal support is likely to negate the bullish tone to see a deeper pull-back to retest the 22260/22180 weekly pivotal support (neckline of the “Double Bottom” bullish breakout).
Disclaimer
This report is intended for general circulation only. It should not be construed as a recommendation, or an offer (or solicitation of an offer) to buy or sell any financial products. The information provided does not take into account your specific investment objectives, financial situation or particular needs. Before you act on any recommendation that may be contained in this email, independent advice ought to be sought from a financial adviser regarding the suitability of the investment product, taking into account your specific investment objectives, financial situation or particular needs. All queries regarding the contents of this material are to be directed to City Index, a trading name of GAIN Capital Singapore Pte Ltd.
Trading CFDs and FX on margin carries a high level of risk that may not be suitable for some investors. Consider your investment objectives, level of experience, financial resources, risk appetite and other relevant circumstances carefully. The possibility exists that you could lose some or all of your investments, including your initial deposits. If in doubt, please seek independent expert advice. Visit cityindex.com.sg for the complete Risk Disclosure Statement.
Related tags:
Latest market news
Open an account in minutes
Experience award-winning platforms with fast and secure execution, and enjoy tight spreads from 0.5 pts on FX and 0.3 pts on indices.
Economic calendar
Web Trader platform
Our sophisticated web-based platform is packed with features.
Related articles
This report is intended for general circulation only. It should not be construed as a recommendation, or an offer (or solicitation of an offer) to buy or sell any financial products. The information provided does not take into account your specific investment objectives, financial situation or particular needs. Before you act on any recommendation that may be contained in this report, independent advice ought to be sought from a financial adviser regarding the suitability of the investment product, taking into account your specific investment objectives, financial situation or particular needs.
StoneX Financial Pte. Ltd., may distribute reports produced by its respective foreign entities or affiliates within the StoneX group of companies or third parties pursuant to an arrangement under Regulation 32C of the Financial Advisers Regulations. Where the report is distributed to a person in Singapore who is not an accredited investor, expert investor or an institutional investor (as defined in the Securities Futures Act), StoneX Financial Pte. Ltd. accepts legal responsibility to such persons for the contents of the report only to the extent required by law. Singapore recipients should contact StoneX Financial Pte. Ltd. at 6826 9988 for matters arising from, or in connection with the report.
In the case of all other recipients of this report, to the extent permitted by applicable laws and regulations neither StoneX Financial Pte. Ltd. nor its associated companies will be responsible or liable for any loss or damage incurred arising out of, or in connection with, any use of the information contained in this report and all such liability is hereby expressly disclaimed. No representation or warranty is made, express or implied, that the content of this report is complete or accurate.
StoneX Financial Pte. Ltd. is not under any obligation to update this report.
Trading CFDs carries a high level of risk that may not be suitable for some investors. Consider your investment objectives, level of experience, financial resources, risk appetite and other relevant circumstances carefully. The possibility exists that you could lose some or all of your investments, including your initial deposits. If in doubt, please seek independent expert advice. Visit www.forex.com/en-sg/terms-and-policies for the complete Risk Disclosure Statement.