Quarterly Outlook
Equity outlook: The high cost of global fragmentation for US portfolios
Charu Chanana
Chief Investment Strategist
Access both platforms from your single Saxo account.
Technical Update - ASX200, Hang Seng & China A50
Kim Cramer Larsson
Technical Analyst, Saxo Bank Group
Summary: ASX200 in downtrend testing key support.
Hang Seng rejected at 20K. Trend reversal could unfold
China A50 in uptrend but could be caught in side ways range
S&P ASX 200 is currently testing the 0.382 retracement and 200 daily SMA around 7K. The Index is in a confirmed short-term downtrend. RSI showing negative sentiment indicates lower levels are likely. Next strong support at around 6,785 which is also around the 0.618 retracement of the September to December uptrend.
If ASX 200 closes above 7,167 it could indicate a trend reversal that could take the Index back to December highs possibly higher.
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
Latest Market Insights
Quarterly Outlook
-
-
Quarterly Outlook
Commodity Outlook: Commodities rally despite global uncertainty
Ole Hansen
Head of Commodity Strategy
-
Quarterly Outlook
Upending the global order at blinding speed
John J. Hardy
Global Head of Macro Strategy
We are witnessing a once-in-a-lifetime shredding of the global order. As the new order takes shape, ... -
Quarterly Outlook
Asset allocation outlook: From Magnificent 7 to Magnificent 2,645—diversification matters, now more than ever
Jacob Falkencrone
Global Head of Investment Strategy
-
Quarterly Outlook
Macro outlook: Trump 2.0: Can the US have its cake and eat it, too?
John J. Hardy
Global Head of Macro Strategy
-
Quarterly Outlook
Equity Outlook: The ride just got rougher
Charu Chanana
Chief Investment Strategist
-
Quarterly Outlook
China Outlook: The choice between retaliation or de-escalation
Charu Chanana
Chief Investment Strategist
-
Quarterly Outlook
Commodity Outlook: A bumpy road ahead calls for diversification
Ole Hansen
Head of Commodity Strategy
-
Quarterly Outlook
FX outlook: Tariffs drive USD strength, until...?
John J. Hardy
Global Head of Macro Strategy
-
Quarterly Outlook
Fixed Income Outlook: Bonds Hit Reset. A New Equilibrium Emerges
Althea Spinozzi
Head of Fixed Income Strategy