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Technical Update - Hang Seng, HK50 and China A50 still looking bearish

Equities 3 minutes to read
KCL
Kim Cramer Larsson

Technical Analyst, Saxo Bank

Hang Seng Index has for two days in a row broken above the resistance at around 18,562 but failed to close above. That is a sign of weakness and Hang Seng is likely to pick up bearish trend.

Even if the Index will manage to close above the resistance the upside potential seems limited. 55 daily Moving Average is coming down around 19K and the 100 Moving Average is declining currently around 19,300,  and the upper falling trendline will also add to the resistance.

A close above 19,350 is needed for Hang Seng to turn bullish.

If the down trend is resuming Hang Seng is likely to slide lower to around 17K.

hsi d 0109
Source all charts and data: Saxo Group

HK50 cfd formed 30th August and inverted hammer candle which is regarded as a top and reversal candle. The resistance at 18,672 seemed too strong for HK50 to close above thus building uptrend.

A close above 18,744 could fuel a short rally towards 19,000-19,100
Currently test minor support at around 18,226 HK50 seems set to resume downtrend. A move to 17,328 support is in the cards

hk50 d 0109
China A50 future rebound could be short-lived . It requires a close above 13,116 to confirm an uptrend. Even if A50 succeeds in doing so there is strong resistance at around 13,500.
A50 could resume downtrend with another push towards strong support around 12,265
a50 d 0109

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