Hang Seng Index Finds Support at 25,000 as China A-Shares Rebound

HANG SENG INDEX, CHINA A50 INDEX, GOLD PRICE OUTLOOK:

Cling Seng index is testing 25,00Zero key help, with Hong Kong dealing with an escalating virus scenario
China A50 index rebounds to 15,170 after a risky week

Cling Seng Index Outlook:

Hong Kong’s Cling Seng Index (HSI) inventory market benchmark ended a risky week with a 0.47% achieve on Friday, with the commerce & business sector doing the heavy-lifting. Tencent (+1.56%), HKEX (+3.15%) and Techtronic (+4.39%) have been among the many greatest performers.

Trying forward nonetheless, a fast improve in group infections of the coronavirus has elevated the danger of additional lockdown measures as work-from-home insurance policies return for civil servants and financial institution employees. Hong Kong has tightened controls to curb the virus’ unfold, however the truth that newly discovered circumstances are scattered across the metropolis means that extra circumstances might immerge within the weeks to come back. The scenario would solely worsen if imported circumstances are considered.

Sector–smart, client discretionary, monetary providers, transportation, luxurious items, leisure, aviation and hospitality are among the many areas most weak to a possible second viral wave. Defensive utilities, client staples and healthcare could also be extra resilient.

Technically, HSI is searching for help at 25,000, which is the higher certain of the ‘Ascending Triangle’ that it broke two weeks in the past. Earlier resistance has now turn out to be a crucial help, breaking beneath which can most likely result in draw back extension towards the 50-day Easy Shifting Common (SMA) at 24,550.

Holding above 25,00Zero might result in some consolidation above this degree and pave the way in which to problem the subsequent resistance at 26,048 – the 61.8% Fibonacci retracement degree.

Cling Seng Index Constituent Sector Each day Efficiency 17-7-2020

Cling Seng Index – Each day Chart

FTSE China A50 Index Outlook:

The FTSE China A50 Index(A50) inventory market benchmark ended final week with a 4.1% loss, wiping out your entire achieve seen within the earlier week. The Shanghai Composite stopped bleeding on Friday with a marginal achieve, as mainland merchants are most likely hoping this can be a technical pullback reasonably than the tip of the bull market. This week goes to be crucial for mainland shares. Worth ranges and buying and selling volumes will should be monitored rigorously.

Technically, the A50 index has examined 15,00Zero help and held above it. 15,00Zero can be the higher certain of the ‘ascending channel’ that A50 traded inside from finish March until early July, and thus serves as a crucial help. The long-range bearish bar shaped final Thursday, nonetheless, could encourage some promoting strain within the close to time period.

FTSE China A50 Index – Each day Chart

Gold Worth Outlook:

Technically, gold prices have damaged above an ‘Ascending Triangle’ shaped because the finish of March, shifting larger since. Its general development stays bullish because the 10-Day, 20-Day and 50-Day SMAs shaped golden crosses, sloping upwards.

Gold costs are consolidating at US$ 1,810 and ready for constructive catalysts for a possible breakout. Instant help ranges might be discovered at US$ 1,800 after which 1,780.

Gold Worth – Each day Chart