Technical Update - Hang Seng/HK50  and China A50 are drawing bearish pictures. Nikkei/JP225 range bound correction Technical Update - Hang Seng/HK50  and China A50 are drawing bearish pictures. Nikkei/JP225 range bound correction Technical Update - Hang Seng/HK50  and China A50 are drawing bearish pictures. Nikkei/JP225 range bound correction

Technical Update - Hang Seng/HK50 and China A50 are drawing bearish pictures. Nikkei/JP225 range bound correction

Equities 3 minutes to read
KCL
Kim Cramer Larsson

Technical Analyst, Saxo Bank

Hang Seng Index have found support at 18,562 and RSI at the 40 threshold meaning it is still in positive sentiment. However, the Hang Seng trend is down, MACD is suggesting lower Index levels, it is most likely just a matter of time before also RSI will confirm the downtrend.
A close below 18,562 is likely to further fuel the sell-off down to strong support at around 18K. Some support at around 18,343

Source all charts and data: Saxo Group

The HK50 cfd is at the time of writing trading lower below the support and the RSI is currently below 40 threshold indicating lower levels. A sell-off down to support at around 18,226 would be a likely scenario.

A close above 19,495 and HK50 will turn bullish

FTSE China A50 future has been sold off heavily the past two trading sessions to the 0.786 retracement at 12,662. Below the all Moving Average; the 55, 100 and 200 daily Moving Averages.
A50 still hasn’t closed below the Cloud and RSI is still above 40 threshold which could indicate a bounce from current levels.
A possible bounce to top of the Cloud at around 12,865 before selling pressure is likely to resume

A close below the Cloud and an RSI close below 40 is likely to push A50 to test and penetrate the support at around 12,200.

A close above 13,064 thereby a close above the 200 daily Moving Average and the A50 is likely to resume uptrend. 

JP225 cfd is in a range bound corrective phase between 31,770 and 33,400. That range bound behaviour could continue a few days more.

If breaking below 31,770 bearish a sell-off down to support around 30,600 could be seen. However, the Cloud and 100 daily Moving Average will provide support and there is support at around 31,350 which could cut short a bearish breakout.

Disclaimer

The Saxo Bank Group entities each provide execution-only service and access to Analysis permitting a person to view and/or use content available on or via the website is not intended to and does not change or expand on this. Such access and use are at all times subject to (i) The Terms of Use; (ii) Full Disclaimer; (iii) The Risk Warning; (iv) the Rules of Engagement and (v) Notices applying to Saxo News & Research and/or its content in addition (where relevant) to the terms governing the use of hyperlinks on the website of a member of the Saxo Bank Group by which access to Saxo News & Research is gained. Such content is therefore provided as no more than information. In particular no advice is intended to be provided or to be relied on as provided nor endorsed by any Saxo Bank Group entity; nor is it to be construed as solicitation or an incentive provided to subscribe for or sell or purchase any financial instrument. All trading or investments you make must be pursuant to your own unprompted and informed self-directed decision. As such no Saxo Bank Group entity will have or be liable for any losses that you may sustain as a result of any investment decision made in reliance on information which is available on Saxo News & Research or as a result of the use of the Saxo News & Research. Orders given and trades effected are deemed intended to be given or effected for the account of the customer with the Saxo Bank Group entity operating in the jurisdiction in which the customer resides and/or with whom the customer opened and maintains his/her trading account. Saxo News & Research does not contain (and should not be construed as containing) financial, investment, tax or trading advice or advice of any sort offered, recommended or endorsed by Saxo Bank Group and should not be construed as a record of our trading prices, or as an offer, incentive or solicitation for the subscription, sale or purchase in any financial instrument. To the extent that any content is construed as investment research, you must note and accept that the content was not intended to and has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such, would be considered as a marketing communication under relevant laws.

Please read our disclaimers:
- Notification on Non-Independent Investment Research (https://www.home.saxo/legal/niird/notification)
- Full disclaimer (https://www.home.saxo/legal/disclaimer/saxo-disclaimer)
- Full disclaimer (https://www.home.saxo/en-mena/legal/disclaimer/saxo-disclaimer)


Boulevard Plaza, Tower 1, 30th floor, office 3002
Downtown, P.O. Box 33641 Dubai, UAE

Contact Saxo

Select region

UAE
UAE

Trade responsibly
All trading carries risk. Read more. To help you understand the risks involved we have put together a series of Key Information Documents (KIDs) highlighting the risks and rewards related to each product. Read more

Saxo Bank A/S is licensed by the Danish Financial Supervisory Authority and operates in the UAE under a representative office license issued by the Central bank of the UAE.

The content and material made available on this website and the linked sites are provided by Saxo Bank A/S. It is the sole responsibility of the recipient to ascertain the terms of and comply with any local laws or regulation to which they are subject.

The UAE Representative Office of Saxo Bank A/S markets the Saxo Bank A/S trading platform and the products offered by Saxo Bank A/S.