Technical Update - ASX200, Hang Seng & China A50

Hang Seng Index has now twice failed to close above 20K not even testing the resistance at 20,185. Divergence on RSI indicates exhaustion of the uptrend, and a correction or trend reversal could be seen.
A close back below the 200 SMA and below the lower rising trend line will indicate a correction is in the making, a close below 18,885 will confirm that scenario. A correction that could take Hang Seng down to the 0.382 retracement at around 18K where the 100 and 55 SMA will provide support.
If Hang Seng can manage to close above 20,185 the uptrend is likely to be extended.

FTSE China A50 future seems to be trading in a wide rising channel but struggling to close above the 200 daily SMA. The China A 50 future could be caught in a range be between 12,700 and 13,415 for some time and need a close below or above for direction. RSI showing positive sentiment indicates that the breakout direction will be to the upside. If RSI closes back above 60 that could be a good indicator for the bullish scenario to play out.
A close below 12,696 is likely to fuel a sell-off down to around 11,831. Support at around 12,500.

RSI divergence explained: When the price of an instrument is making a new high/low but RSI values are not making new high/low at the same time. That is a sign of imbalance in the market and a weakening of the uptrend/downtrend. Divergence or imbalance in the market can go on for quite some time but not forever. It is an indication of an exhaustion of the trend