hang seng index potential push up within triangle range 1820352016
Daily Outlook, Fri 08 July 2016 (Click to enlarge charts) What happened earlier/yesterday Since hitting a high of 21176 on Monday, 04 July 2016, the […]
Daily Outlook, Fri 08 July 2016 (Click to enlarge charts) What happened earlier/yesterday Since hitting a high of 21176 on Monday, 04 July 2016, the […]
Since hitting a high of 21176 on Monday, 04 July 2016, the Hong Kong 50 Index (proxy for the Hang Seng Index futures) has tumbled by 4.10% to print a low of 20279 on Wed, 06 July 2016. The recent short-term sell-off is triggered by renewed Italian banking crisis that will have a negative domino effect across the EU financial system.
Technically speaking, the Hong Kong 50 Index is still evolving in a range/sideways configuration and has not exhibit any major toppish signals or elements.
Please click here to recap our latest weekly technical outlook/strategy published on Monday, 04 July 2016.
Intermediate support: 20470
Pivot (key support): 20250
Resistances: 20750 & 21170/280
Next support: 19790 (lower boundary of “Triangle range”)
Potential push up with range configuration. As long as the 20250 daily short-term pivotal support holds, the Index is likely to see a potential push up to retest yesterday’s (06 July) minor swing high area at 20750 before a further upside movement towards 21170/280 (upper boundary of “Triangle range”).
However, a break below the 20250 short-term pivotal support may negate the preferred bullish tone to see a slide towards the lower boundary of the “Triangle range” at 19790.
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