hang seng index minor pull back towards 23700500 support before new potential upleg 1831362016
<p>Daily Outlook, Thurs 22 Sep 2016 (Click to enlarge charts) What happened earlier/yesterday The Hong Kong 50 Index (proxy for Hang Seng Index futures) has […]</p>
Share this:
Daily Outlook, Thurs 22 Sep 2016
What happened earlier/yesterday
The Hong Kong 50 Index (proxy for Hang Seng Index futures) has continued to push up within our expectation and it has managed to stage a gapped up in today’s morning Asian opening session and hit our short-term upside target/resistance at 23820
Please click on this link for a recap on our previous daily short-term technical outlook/strategy.
Key elements
- The daily (medium-term) RSI oscillator remains positive above its above its ascending trendline support and the 50% level. These observations suggest that medium-term upside momentum of price action remains intact.
- However, the hourly (short-term) Stochastic oscillator has started to exit from its overbought region and shows further downside potential before reaching an extreme oversold level. These observations suggest that the Index may see a minor pull-back at this juncture.
- Near-term support now rests at 23700 (gap) and 23500 (minor swing high areas of 13 September/19 September 2016, ascending trendline from 13 September 2016 low & the 50% Fibonacci retracement of the current ongoing up move from 13 September 2016 low to today’s current intraday high of 24074).
Key levels (1 to 3 days)
Intermediate support: 23700
Pivot (key support): 23500
Resistance: 24500
Next support: 23200
Conclusion
The Index may see a pull-back first towards the 23700 intermediate support with a maximum limit set at the 23500 short-term pivotal support before another upleg materialises to target the next resistance at 24500.
On the other hand, a break below the 23500 short-term pivotal support is likely to negate the preferred bullish tone for another round of choppy decline to retest the23200 pull-back support of the former range bullish breakout.
Charts are from City Index Advantage TraderPro
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:
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.