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Hang Seng Index Technical Analysis - Hang Seng Index Trading: 2020-03-26
Hang Seng Index Technical Analysis Summary
Above 23781
Buy Stop
Below 22560.5
Stop Loss
| Indicator | Signal |
| RSI | Neutral |
| MACD | Buy |
| Donchian Channel | Buy |
| MA(200) | Sell |
| Fractals | Buy |
| Parabolic SAR | Buy |
| Fibonacci | Buy |
Hang Seng Index Chart Analysis
Hang Seng Index Technical Analysis
On the 4-hour timeframe HK50: H4 is testing the Fibonacci 32.8 level, rising toward the 200-day moving average MA(200), which is declining itself. We believe the bullish momentum will continue after the price breaches above the upper boundary of Donchian channel at 23781. A level above this can be used as an entry point for placing a pending order to buy. The stop loss can be placed below 22560.5. After placing the order, the stop loss is to be moved every day to the next fractal low, following Parabolic signals. Thus, we are changing the expected profit/loss ratio to the breakeven point. If the price meets the stop loss level (22560.5) without reaching the order (23781), we recommend cancelling the order: the market has undergone internal changes which were not taken into account.
Fundamental Analysis of Indices - Hang Seng Index
Economic data from Hong Kong have been mixed in recent weeks. Will the HK50 rebound continue?
Hong Kong economic data in the last couple of weeks were mixed. Industrial production in Q4 declined 0.5% over same period a year ago following a 0.5% rise in Q3, and unemployment rose to 3.7% in February from 3.4% the prior month. However, consumer price inflation rose to 2.1% over year in February after 1.4% growth in the prior month. The impact of the coronavirus outbreak in China and globally had its negative impact on Hong Kong too. However, many governments launched massive monetary and fiscal aid programs to combat coronavirus impact. Hong Kong government undertook several fiscal measures including tax cuts, rent and financial aid payments to individuals. These measures, among others, included a $1200 cash subsidy to all adult permanent residents, paying one month's rent for people living in public housing, cutting payroll, income, property, and business taxes, low interest government-guaranteed loans for businesses. Global stimulus measures buoyed investors’ confidence, and equity markets globally show recovery signs.
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