Hang Seng Technical Analysis | Hang Seng Trading: 2019-08-22 | IFCM India
IFC Markets Online CFD Broker

Hang Seng Technical Analysis - Hang Seng Trading: 2019-08-22

HK50 technical setup turns bullish

Hong Kong inflation remained steady in July while unemployment ticked up. Will the HK50 advance continue?

Hong Kong economic data have been weak on balance recently: unemployment ticked up to 2.9% in July from 2.8%, the Q2 GDP contraction was revised downward to 0.4% decline from 0.3% of advance reading. However foreign exchange reserves rose while inflation remained steady at 3.3% when a decline to 2.8% was forecast. All these data were recorded against the background of contraction in the private sector activities as evidenced by decline in Markit’s PMI to 43.8 from 47.9 in June: readings above 50.0 indicate sector expansion, and contraction below. Deteriorated US-China trade relations are main reason for slowing of activities. However technical indicators point to upside momentum for Hong Kong stock market. And unresolved US-China trade dispute remains a downside risk for Hong Kong stock market.

HK50 retracing toward MA(200) 08/22/2019 Technical Analysis IFC Markets chart

On the daily timeframe HK50: D1 is retracing higher after hitting 10-month low, still below the 200-day moving average MA(200), which is level.

  • The Parabolic indicator has formed a buy signal.
  • The Donchian channel indicates no trend yet: it is flat.
  • The MACD indicator is below the signal line with the gap narrowing. This is a bullish signal.
  • The RSI oscillator has not reached the overbought zone and has formed a bullish divergence.

We believe the bullish momentum will continue after the price breaches above the upper Donchian boundary at 26401.10. This level can be used as an entry point for placing a pending order to buy. The stop loss can be placed below the lower fractal at 24850.00. After placing the pending order the stop loss is to be moved every day to the next fractal low, following Parabolic signals. Thus, we are changing the expected profit/loss ratio to the breakeven point. If the price meets the stop-loss level (24850.00) without reaching the order (26401.10) we recommend cancelling the order: the market sustains internal changes which were not taken into account.

Technical Analysis Summary

OrderBuy
Buy Stop Above 26401.10
Stop loss Below 24850.00

IFCM Trading Academy - New era in Forex education
Pass Your Course:
  • Get Certificate
trading academy

The best trading conditions and high-level services for our clients

We are ready to assist you on any issue 24 hours a day.

Note:
This overview has an informative and tutorial character and is published for free. All the data, included in the overview, are received from public sources, recognized as more or less reliable. Moreover, there is no guarantee that the indicated information is full and precise. Overviews are not updated. The whole information in each overview, including opinion, indicators, charts and anything else, is provided only for familiarization purposes and is not financial advice or а recommendation. The whole text and its any part, as well as the charts cannot be considered as an offer to make a deal with any asset. IFC Markets and its employees under any circumstances are not liable for any action taken by someone else during or after reading the overview.

Close support
Call to Skype Call to WhatsApp Call to telegram Call Back Call to messenger