Technical Update - Asia-Pacific Equity Indices Nikkei, Hang Seng and ASX200
Kim Cramer Larsson
Technical Analyst, Saxo Bank
The Hang Seng Index broke out bullish of the falling wedge like pattern now hovering around resistance at around 24,385. A close above 24,562 is likely to fuel another rally towards its strong resistance area between 25,746 and 26,214.
RSI closed above 60 threshold supporting the new uptrend which has short term potential up to the 25,745 – 26,125 area.
For the bullish break out scenario to be demolished Hang Seng needs to drop back in the Wedge. First indication of that scenario to play out would be a close of the gap from the 11th and 12th January i.e. a close below 23,739.
If that scenario plays out we could see another attempt at testing December low at around 22,665
Nikkei 225 seems to be trading in a wide slightly rising channel hovering around both the 55 and 200 SMA’s.
During today’s session the Index hovered around the lower rising trend line testing the support at around 27,893 to close a few points below the trend line but holding on above the support.
However, RSI is still indicating bearish sentiment being rejected at the 60 threshold which indicates we could see more downwards pressure. A close below support at 27,893 will confirm bearish trend.
The bullish break out in S&P ASX 200 Index didn’t last long before it got beaten back down below the 7,500 level.
It seems to have found support at the short term rising trend line but could be hit by another wave of selling if the Index closes below 7,355.
However, RSI is still indicating bullish sentiment and the Index value is above both 55 and 200 SMA indicating the 7.355 support to hold. A close above 7.500 could re-ignite the uptrend.
Latest Market Insights
Quarterly Outlook Q3 2022: The Runaway Train
- Central banks' attempts to kill inflation is a paradigm shift, which could end in a deep recession.
Tangible assets and profitable growth are the winnersWith US equities officially in a bear market, the big question is where and when is the bottom in the current drawdown?
Understanding the lack of investment appetite among oil majorsThe everything rally seen in recent quarters has become more uneven, as its strength is driven by commodities in short supply.
The pressure is on as the wind leaves the sailsWith cryptocurrencies in sharp decline, are we entering a crypto winter or is the bear market a healthy clean-up of the crypto space?
Why the Fed can never catch up and what turns the US dollar lower?Many other central banks are set to eventually outpace the Fed in hiking rates, taking their real interest rates to levels higher than the Fed will achieve.
Bank of Japan: Swimming against the tideThe Japanese economy has gone from the age of deflation to rapidly rising prices in no time, leaving the Bank of Japan in a pickle.
Green transformation detour and bear market hibernationWith the impending risk of global econonomic derailment, we share the five things investors need to consider in this new half year.
Crisis redux for the eurozone?Whether there's going to be a recession in Europe or not, the path towards a stable economy will be agonizing.
Technical Outlook: Gold, Oil and a remarkable multi-decade perspective on EquitiesThe Nasdaq bubble pattern, USDJPY resistance, crude oil uptrend losing steam and the technical outlook for USD.
China: the train of new development paradigm left the station two years agoChina is transiting to a new development paradigm, as they are hit by deteriorating terms of trade, a slower global economy and an uncertain future while continuing attempts to contain the pandemic.