Hang Seng Index Futures (Intraday) Remains Trading Within the Declining Channel

Despite of positive Chinese economic data, Hong Kong's Hang Seng Index Futures failed to post a sustainable rebound. China's industrial profits rose 11.5% on year in June, compared with an increase of 6.0% in May, according to the government.

Charts (3)

Despite of positive Chinese economic data, Hong Kong's Hang Seng Index Futures failed to post a sustainable rebound. China's industrial profits rose 11.5% on year in June, compared with an increase of 6.0% in May, according to the government.

Recently, the new inflection number of coronavirus is over a hundred in recent few days, reaching a new record high. The Hong Kong government is going to implement a more lookdown policy.

Besides, the tension of the U.S. and China is rising, which is also affecting the market sentiment of Hong Kong's market. The U.S. government ordered the shutdown of China's Houston consulate. Then, the U.S.Consulate in Chengdu is closed by Chinese government. 

From a technical point of view, Hang Seng Futures are trading within the declining channel on a 1-hour chart, indicating a negative outlook.

The declining 50-period moving average is acting as resistance now. The RSI also struck against its neutrality level at 50 and is reversing down.

Bearish readers could set the nearest resistance level at 25035 (the 61.8% retracement level), while the support levels would be located at 24570 (the previous low) and 24375 (127.2% expansion).


Source: GAIN Capital, TradingView

From time to time, GAIN Capital Australia Pty Ltd (“we”, “our”) website may contain links to other sites and/or resources provided by third parties. These links and/or resources are provided for your information only and we have no control over the contents of those materials, and in no way endorse their content. Any analysis, opinion, commentary or research-based material on our website is for information and educational purposes only and is not, in any circumstances, intended to be an offer, recommendation or solicitation to buy or sell. You should always seek independent advice as to your suitability to speculate in any related markets and your ability to assume the associated risks, if you are at all unsure. No representation or warranty is made, express or implied, that the materials on our website are complete or accurate. We are not under any obligation to update any such material.

As such, we (and/or our associated companies) will not be responsible or liable for any loss or damage incurred by you or any third party arising out of, or in connection with, any use of the information on our website (other than with regards to any duty or liability that we are unable to limit or exclude by law or under the applicable regulatory system) and any such liability is hereby expressly disclaimed.