Macro: Sandcastle economics
Invest wisely in Q3 2024: Discover SaxoStrats' insights on navigating a stable yet fragile global economy.
Technical Analyst, Saxo Bank Group
Hang Seng was rejected at the 0.50 retracements at 20,785 just below 21K and is now back below 55 Moving Average which is declining. The index is also below the cloud and if it closes below 19,974 down trend has resumed with a potential move down to strong support at around 18,814. To resume uptrend a close above 20,865 is needed.
China A50 future seems indecisive. The bearish engulfing last week could be the peak of a correction that has run its course.
13K is a support and a close below can trigger a sell-off that could take out support at around 12,787. If that scenario plays out and A50 breaks 12,787 level further down side is likely
To demolish this likely bearish scenario a close above 13,522 is needed. A close above 13,651 will confirm a uptrend. .
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