Will Hang Seng go for a lower low?


Hong Kong’s Hang Seng traded lower yesterday, after hitting resistance at 24805. Overall, the index remains below the tentative downside resistance line drawn from the high of June 28th, and thus, we would still see a negative near-term picture.

A clear and decisive dip below 23765, marked by Tuesday’s low, would confirm a forthcoming lower low on both the 4-hour and daily charts and may pave the way towards the 22970 territory, defined as a support by the low of September 25th, 2020. If that barrier is not able to halt the slide, then its break may result in extensions towards the low of May 25th, 2020, at 22500.

Shifting attention to our short-term oscillators, we see that the RSI turned down after it hit resistance slightly below its 50 line, while the MACD, although above its trigger line, has topped within its negative territory. Both indicators suggest that the index is gaining back some downside speed, which is in line with the scenario of seeing further near-term declines.

In order to abandon the bearish case and start examining whether the bulls have stolen the bears’ swords, we would like to see a recovery above 26215. This may confirm the break above the aforementioned tentative downside resistance line and may initially target the 26890 zone, which is defined as a resistance by the inside swing lows of July 9th and 21st. Another break, above 26890, could carry larger bullish implications, perhaps setting the stage for the peak of July 22nd, at 27755.

Chart

The content we produce does not constitute investment advice or investment recommendation (should not be considered as such) and does not in any way constitute an invitation to acquire any financial instrument or product. JFD Group, its affiliates, agents, directors, officers or employees are not liable for any damages that may be caused by individual comments or statements by JFD Group analysts and assumes no liability with respect to the completeness and correctness of the content presented. The investor is solely responsible for the risk of his investment decisions. Accordingly, you should seek, if you consider appropriate, relevant independent professional advice on the investment considered. The analyses and comments presented do not include any consideration of your personal investment objectives, financial circumstances or needs. The content has not been prepared in accordance with the legal requirements for financial analyses and must therefore be viewed by the reader as marketing information. JFD Group prohibits the duplication or publication without explicit approval.

73.90% of the retail investor accounts lose money when trading CFDs with this provider. You should consider whether you can afford to take the high risk of losing your money. Please read the full Risk Disclosure: https://www.jfdbank.com/en/legal/risk-disclosure

Feed news

Latest Forex Analysis


Latest Forex Analysis

Editors’ Picks

EUR/USD gains traction and climbs above 1.1600 after US data

After dropping below 1.1600 earlier in the day, EUR/USD managed to stage a recovery in the early American session toward 1.1620 with the latest data releases from the US making it difficult for the greenback to find demand. US trade deficit expanded in September and durable goods orders contracted. 

EUR/USD News

GBP/USD stays in the negative territory around mid-1.3700s

GBP/USD recovered modestly from the weekly low it set at 1.3710 earlier in the day but continues to trade in the negative territory around 1.3750. The dollar is staying on the back foot after the latest data releases but the cautious mood is limiting the pair's upside.

GBP/USD News

XAU/USD inches closer to $1,800 amid sliding bond yields/weaker USD

Gold attracted some dip-buying for the second successive day on Wednesday. Retreating US bond yields, weaker USD acted as a tailwind for the commodity. Hawkish central bank expectations might continue to cap gains for the metal.

Gold News

Shiba Inu price to provide buy opportunity before SHIB doubles again

Shiba Inu price is due for a retracement after rallying 113% in less than three days. The MRI displays a major sell signal, hinting at a correction that could extend 17%.

Read more

Bank of Canada Rate Decision: Inflation prospects headline policy review Premium

The Bank of Canada is expected to continue tapering its asset purchases and maintain its current rate posture when it concludes it meeting on Wednesday at 10:00 am EDT. Overnight rate projected to be unchanged at 0.25%.

Read more

Majors

Cryptocurrencies

Signatures