hang seng index daily outlook for wed 12 aug potential recovery above 24000 key support 1012512015
(Click to enlarge chart) Key elements The Hong Kong 40 Index (proxy for the Hang Seng Index) has tumbled by 3%+ from its short-term range […]
(Click to enlarge chart) Key elements The Hong Kong 40 Index (proxy for the Hang Seng Index) has tumbled by 3%+ from its short-term range […]
Pivot (key support): 24000
Resistance: 24900
Next support: 23450
Yesterday’s drastic sell-off (risk-off) seen in global stock markets was driven by the sudden devaluation of the Chinese CNY as market participants view this move as a desperate attempt to review the “ailing” China economy.
Technically speaking, the Hong Kong 40 Index is now resting at a significant support of 24000 and short-term elements have started to show signs of a recovery. As long as the 24000 key pivotal support holds, the Index is likely to shape a rebound to retest the range top (resistance) at 24900.
On the other hand, a clear break below the 24000 support is likely to trigger a deeper decline to towards the key long-term support at 23450.
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