Technical Update - Hang Seng/HK50 cfd
Kim Cramer Larsson
Technical Analyst, Saxo Bank Group
Hang Seng/HK50 seems to be rejected at the 0.618 Fibonacci retracement level at around 22,466.
Expect a bit of a tug of war at current levels. If Sellers take back control bear trend is likely to resume. A break above 22,500 the 55 SMA is likely to be tested but the rebound could be extended to the 0.764 retracement at 23,442.
At the time of writing the HK50 cfd/Future is trading lower. Strong support at 20,786.
Closing the gap from 17th March will accelerate a sell off.
RSI is still well below 60 threshold showing bear sentiment and there is no divergence supporting the bearish scenario likely to resume.
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