Hang Seng Index: Watch the Key resistance level at 24335
Medion Jim October 6, 2020 5:25 PM
The Hong Kong Hang Seng Index rallied 1.3% yesterday, lifted by heavily weighted stock, such as Tencent, HSBC Alibaba and AIA.
The Hong Kong Hang Seng Index rallied 1.3% yesterday, lifted by heavily weighted stocks, such as Tencent, HSBC, Alibaba and AIA. However, 17 index composite stocks remained down. In addition, the volume of the Hong Kong market is below HK$100 billion, which is relatively low to normal trading days. It suggested that the rise of the Hang Seng Index could not reflect the change of market sentiment.
In fact, investors should focus on the price action after the re-open of the China market as the Hong Kong market should have more trading volume to reflect the sentiment of most market participants.
From a technical point of view, the index posted a rebound from 23125 after hitting 61.8% fibonacci retracement level on a daily chart, but it is still capped by a declining 20-day moving average.
As long as the resistance level at 24335 is not surpassed, the index could consider a return to 23125 before dropping to the next support level at 22520. Alternatively, a break above 24335 would call for a stronger rebound to 25000.
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.