Hang Seng Index Futures Remains Trading Within the Declining Channel

Hang Seng Index Futures (Intraday) Remains Trading Within the Declining Channel

Despite of positive Chinese economic data, Hong Kong's Hang Seng Index Futures failed to post a sustainable rebound. China's industrial profits rose 11.5% on year in June, compared with an increase of 6.0% in May, according to the government.

Recently, the new inflection number of coronavirus is over a hundred in recent few days, reaching a new record high. The Hong Kong government is going to implement a more lookdown policy.

Besides, the tension of the U.S. and China is rising, which is also affecting the market sentiment of Hong Kong's market. The U.S. government ordered the shutdown of China's Houston consulate. Then, the U.S.Consulate in Chengdu is closed by Chinese government.

From a technical point of view, Hang Seng Futures are trading within the declining channel on a 1-hour chart, indicating a negative outlook.

The declining 50-period moving average is acting as resistance now. The RSI also struck against its neutrality level at 50 and is reversing down.

Bearish readers could set the nearest resistance level at 25035 (the 61.8% retracement level), while the support levels would be located at 24570 (the previous low) and 24375 (127.2% expansion).

Source: GAIN Capital, TradingView

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