CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 69% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.
Open account
☰
CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 69% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.
Open account
✖

Chart of the day Hang Seng potential short term recovery in progress

Article By: ,  Financial Analyst
February 13, 2018 7:50 AM

Short-term technical outlook on Hong Kong 50 Index (Tues, 13 Feb)



Key technical elements

  • The daily RSI oscillator has tested and exited from its oversold region at the 30% which indicates that the 13% decline from its recent high of 29 Jan 2018 is being overextended where a potential short-term mean reversion rebound/recovery may take shape at this juncture.
  • Then key short-term support rests at 29400 which is defined by yesterday, 12 Feb Asian session low that was tested and held in the U.S. session on the same day as well as the 61.8% Fibonacci retracement of the current up move from last Fri, 09 Feb 2018 U.S. session low.
  • The next significant near-term resistances stands at 3760 follow by 31280/400 (descending trendline from 29 Jan 2018, the minor swing high area of 07Feb 2017 & the 50% Fibonacci retracement of the steep decline from 29 Jan 2018 to 09 Feb U.S. session low).

Key Levels (1 to 3 days)

Intermediate support: 29750

Pivot (key support): 29400

Resistances: 3760 & 31280/400

Next supports: 29070 & 28600 (upper limit of a major support zone).

Conclusion

The on-going up move from last Friday 09 Feb  U.S. session low of 29072 seem to have room for further potential upside. As long as the 29400 key short-term pivotal support holds, the Index is likely to shape at least a potential short-term recovery to retest the near-term resistances of 3760 and 31280/400 next.

On the other hand, failure to hold above 29400 should negate the recovery scenario to a slide to retest last Friday, 09 Feb low of 29070. A break below 29070 is likely to open up scope for a further corrective decline towards the upper limit of a major support zone at 28600 (38.2% Fibonacci retracement of the up move from 28 Dec 2016 low to 29 Jan 2018 high & the former major swing high area of Apr/May 2015).

Charts are from City Index Advantage TraderPro 


StoneX Financial Ltd (trading as “City Index”) is an execution-only service provider. This material, whether or not it states any opinions, is for general information purposes only and it does not take into account your personal circumstances or objectives. This material has been prepared using the thoughts and opinions of the author and these may change. However, City Index does not plan to provide further updates to any material once published and it is not under any obligation to keep this material up to date. This material is short term in nature and may only relate to facts and circumstances existing at a specific time or day. Nothing in this material is (or should be considered to be) financial, investment, legal, tax or other advice and no reliance should be placed on it.

No opinion given in this material constitutes a recommendation by City Index or the author that any particular investment, security, transaction or investment strategy is suitable for any specific person. The material has not been prepared in accordance with legal requirements designed to promote the independence of investment research. Although City Index is not specifically prevented from dealing before providing this material, City Index does not seek to take advantage of the material prior to its dissemination. This material is not intended for distribution to, or use by, any person in any country or jurisdiction where such distribution or use would be contrary to local law or regulation.

For further details see our full non-independent research disclaimer and quarterly summary.

CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 69% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money. CFD and Forex Trading are leveraged products and your capital is at risk. They may not be suitable for everyone. Please ensure you fully understand the risks involved by reading our full risk warning.

City Index is a trading name of StoneX Financial Ltd. Head and Registered Office: 1st Floor, Moor House, 120 London Wall, London, EC2Y 5ET. StoneX Financial Ltd is a company registered in England and Wales, number: 05616586. Authorised and regulated by the Financial Conduct Authority. FCA Register Number: 446717.

City Index is a trademark of StoneX Financial Ltd.

The information on this website is not targeted at the general public of any particular country. It is not intended for distribution to residents in any country where such distribution or use would contravene any local law or regulatory requirement.

© City Index 2024