Cling Seng Index, Hong Kong Equities, HSI – Technical Outlook:
- The upside strain on the Cling Seng index has eased considerably within the close to time period.
- Nonetheless, the broad trajectory for Hong Kong/China shares stays up.
- What are the important thing ranges to observe for?
Really useful by Manish Jaradi
Primary rules of vary buying and selling
Cling Seng Index Technical Outlook – Bullish
The latest decline in Hong Kong shares seems to be a pause and never a reversal of the uptrend. Certainly, broad market alerts and technical charts proceed to color a bullish story within the coming weeks.
Worth Reality, Feeling, Fiction
As of Thursday, 96% of members of the Cling Seng Index (HSI) have been above their respective 100-day transferring averages (DMA), not a lot larger than 100% per week earlier. Knowledge since 2001 reveals that when 100% of members are above their respective 100-DMA, the index has been up 60% of the next 120 days (see distribution plot of returns).
Distribution Plot of Returns in 120 Days
Supply information: Bloomberg; Chart created by Manish Jaradi utilizing Python.
On technical charts, the HSI has pulled again from stiff resistance at a horizontal line since (roughly) the start of 2022, which coincides with the 89-week transferring common. A drop under the decrease fringe of an ascending channel from October confirms that the upward strain has light considerably within the quick time period (partially as a result of stability of the channel. ie, sideways value motion as effectively) There might be a break under . However it isn’t essentially bearish).
cling seng index every day chart
Chart created by Manish Jaradi utilizing Metastock
Nonetheless, the broad development stays bullish, as mirrored by the Shifting Common Convergence Divergence Indicator in constructive territory and color-coded candles (see earlier replace for extra particulars). Having stated that, consolidation doesn’t suggest the index cannot fall additional – it could possibly, however usually not deep sufficient to alter the broad trajectory.
cling seng index every day chart
Chart created by Manish Jaradi utilizing TradingView
On this regard, there’s a pretty sturdy convergence cushion on the early-December excessive of 19926, coinciding with the 89-day transferring common (DMA) and 200-DMA. The decrease fringe of the Ichimoku cloud cowl (now round 18000) is a powerful help.
— Written by Manish Jaradi, Strategist at DailyFX.com
