GL Banner 952x160 KML GL Banner 952x160 KML GL Banner 952x160 KML

Technical Update - ASX 200 rejected at resistance. Hang Seng & China 50 continuing down trend

Equities 3 minutes to read
KCL
Kim Cramer Larsson

Technical Analyst, Saxo Bank

ASX 200 formed on the 20th July a Gravestone Doji candle which is an indication of a top and reversal. Not the best top and reversal indicator but nevertheless. Combined with negative RSI as in this case it is fairly reliable.

A sell-off down seems likely. However, there is some support around 7,200 with all daily Moving Averages rising and clustered together. That could mean that the downside potential is limited.

In fact ASX200 could be range bound between 7K and 7,400 for quite some time. For upside momentum a close above the peak of the Gravestone Doji i.e., above 7,384 is needed.
Until that scenario plays out ASX200 is likely to be quite depressed.
An Index close below the 200 Moving Average is likely to fuel a sell-off down to /K

A close above 7,384 there is strong resistnace at around 7,633

asx200 d 24jul
Source all charts and data: Saxo Group
asx200 w 24jul

Hang Seng Index down trend is continuing and is likely to test support at around 18,050 shortly. A close below could fuel a sell-off down to 17K
Hang Seng is below the Cloud and all Moving Averages, and RSI is negative with no divergence supporting the Bearish picture.

To demolish and potentially reverse that a close above 19,535 is needed.

hsi d 24jul

China A 50 (future) is almost similar to Hang Seng; Below the Cloud, below all Moving Averages and negative RSI.
A test of support at around 12,200 is in the cards. A close below is likely to fuel a sell-off lower to 11,300

To reverse the bearish picture a close above 12,870 is needed.

a50 d 24jul

Disclaimer

The Saxo Bank Group entities each provide execution-only service and access to Analysis permitting a person to view and/or use content available on or via the website. This content is not intended to and does not change or expand on the execution-only service. Such access and use are at all times subject to (i) The Terms of Use; (ii) Full Disclaimer; (iii) The Risk Warning; (iv) the Rules of Engagement and (v) Notices applying to Saxo News & Research and/or its content in addition (where relevant) to the terms governing the use of hyperlinks on the website of a member of the Saxo Bank Group by which access to Saxo News & Research is gained. Such content is therefore provided as no more than information. In particular no advice is intended to be provided or to be relied on as provided nor endorsed by any Saxo Bank Group entity; nor is it to be construed as solicitation or an incentive provided to subscribe for or sell or purchase any financial instrument. All trading or investments you make must be pursuant to your own unprompted and informed self-directed decision. As such no Saxo Bank Group entity will have or be liable for any losses that you may sustain as a result of any investment decision made in reliance on information which is available on Saxo News & Research or as a result of the use of the Saxo News & Research. Orders given and trades effected are deemed intended to be given or effected for the account of the customer with the Saxo Bank Group entity operating in the jurisdiction in which the customer resides and/or with whom the customer opened and maintains his/her trading account. Saxo News & Research does not contain (and should not be construed as containing) financial, investment, tax or trading advice or advice of any sort offered, recommended or endorsed by Saxo Bank Group and should not be construed as a record of our trading prices, or as an offer, incentive or solicitation for the subscription, sale or purchase in any financial instrument. To the extent that any content is construed as investment research, you must note and accept that the content was not intended to and has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such, would be considered as a marketing communication under relevant laws.

Please read our disclaimers:
Notification on Non-Independent Investment Research (https://www.home.saxo/legal/niird/notification)
Full disclaimer (https://www.home.saxo/legal/disclaimer/saxo-disclaimer)
Full disclaimer (https://www.home.saxo/legal/saxoselect-disclaimer/disclaimer)

Saxo Bank A/S (Headquarters)
Philip Heymans Alle 15
2900
Hellerup
Denmark

Contact Saxo

Select region

International
International

Trade responsibly
All trading carries risk. Read more. To help you understand the risks involved we have put together a series of Key Information Documents (KIDs) highlighting the risks and rewards related to each product. Read more

This website can be accessed worldwide however the information on the website is related to Saxo Bank A/S and is not specific to any entity of Saxo Bank Group. All clients will directly engage with Saxo Bank A/S and all client agreements will be entered into with Saxo Bank A/S and thus governed by Danish Law.

Apple and the Apple logo are trademarks of Apple Inc, registered in the US and other countries and regions. App Store is a service mark of Apple Inc. Google Play and the Google Play logo are trademarks of Google LLC.