hang seng index testing 23100500 resistance ahead of u s nonfarm payrolls 1828942016
Daily Outlook, Thurs 01 Sep 2016 (Click to enlarge chart) What happened earlier/yesterday The Hong Kong 50 Index (proxy for Hang Seng Index futures) has […]
Daily Outlook, Thurs 01 Sep 2016 (Click to enlarge chart) What happened earlier/yesterday The Hong Kong 50 Index (proxy for Hang Seng Index futures) has […]
The Hong Kong 50 Index (proxy for Hang Seng Index futures) has traded sideways yesterday below our predefined short-term pivotal resistance of 23100.
In today’s morning session (01 Sep 2016), the Index has managed to recover from its opening losses by staging a rally of 0.8% to print a current intraday high of 23085 due to a better than expected China’s official NBS Manufacturing PMI data for August (50.4 versus an expectant of 49.9) which is also in line with the private sector’s Caixin Manufacturing PMI of 50.0 for August.
Despite the earlier push up seen in price action of Index, it is still below the 23100 short-term pivotal resistance and based on current technical elements, we do not think that the latest set of China Manufacturing PMI data is able to alter the current sideways configuration of the Index. More details as per explained below.
Please click here for a recap on our previous daily short-term technical outlook/strategy.
Intermediate resistance: 23100
Pivot (key resistance): 23500
Supports: 22740 & 22200
Next resistance: 24500
Maintain bearish bias but 22740 needs to be broken down in order to add impetus for a potential decline to target the next support at 22200 in the first step.
However, a break above the 23500 medium-term pivotal resistance is likely to invalidate the preferred bearish scenario for another round of impulsive up move towards the next resistance at 24500 (please click on this link for a recap on our latest weekly technical outlook/strategy published on Monday,29 August).
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