Breaking News

Hang Seng Technicals: 2018-06-21

By IFC MarketsStock MarketsJun 21, 2018 09:39AM ET
Hang Seng Technicals: 2018-06-21
By IFC Markets   |  Jun 21, 2018 09:39AM ET
Saved. See Saved Items.
This article has already been saved in your Saved Items

Weak Chinese Demand Bearish For HK 50

Falling Hong Kong Purchasing Managers Index points to slowing economic growth. Will HK50 continue the decline?
Hong Kong economy’s expansion accelerated in the first quarter. Data after Q1 GDP report were positive on balance: while unemployment, retail sales and trade deficit improved in April, the inflation declined. Recent data however point to weakening demand from China: the Nikkei Hong Kong Purchasing Managers Index fell from 49.1 in April to 47.8 in May, the third consecutive decrease. Values below 50 indicate contraction in the private sector. Escalating US-China trade war tensions weighing on China’s economy negatively impact China’s import demand. Weaker Chinese demand is bearish for HK50.

Hang Seng
Hang Seng

On the daily chart the HK50: D1 has slipped to the lower bound of the wide trading range where it fluctuated in the last four months. The price is testing the support line (resistance turned into support). It has fallen below the 50-day moving average MA(50) which is turning lower too.

  • The Donchian channel is neutral: it is flat.
  • The Parabolic indicator has formed a sell signal.
  • The MACD indicator is below the signal line and the gap is widening, which is bearish.
  • The stochastic oscillator has breached into the oversold zone, this is bullish.

We believe the bearish momentum will continue after the price closes below lower boundary of Donchian channel at 29260. This level can be used as an entry point for placing a pending order to sell. The stop loss can be placed above last fractal high at 31625.50. After placing the order, the stop loss is to be moved every day to the next fractal high, following Parabolic signals. Thus, we are changing the probable profit/loss ratio to the breakeven point. If the price meets the stop loss level (31625.50) without reaching the order (29260), we recommend cancelling the order: the market has undergone internal changes which were not taken into account.

Technical Analysis Summary

Position Sell
Sell stop Below 29260
Stop loss Above 31625.50

Hang Seng Technicals: 2018-06-21

Related Articles

Hang Seng Technicals: 2018-06-21

Add a Comment

Comment Guidelines

We encourage you to use comments to engage with users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind: 

  • Enrich the conversation
  • Stay focused and on track. Only post material that’s relevant to the topic being discussed.
  • Be respectful. Even negative opinions can be framed positively and diplomatically.
  •  Use standard writing style. Include punctuation and upper and lower cases.
  • NOTE: Spam and/or promotional messages and links within a comment will be removed
  • Avoid profanity, slander or personal attacks directed at an author or another user.
  • Don’t Monopolize the Conversation. We appreciate passion and conviction, but we also believe strongly in giving everyone a chance to air their thoughts. Therefore, in addition to civil interaction, we expect commenters to offer their opinions succinctly and thoughtfully, but not so repeatedly that others are annoyed or offended. If we receive complaints about individuals who take over a thread or forum, we reserve the right to ban them from the site, without recourse.
  • Only English comments will be allowed.

Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at’s discretion.

Write your thoughts here
Are you sure you want to delete this chart?
Post also to:
Replace the attached chart with a new chart ?
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Thanks for your comment. Please note that all comments are pending until approved by our moderators. It may therefore take some time before it appears on our website.
Are you sure you want to delete this chart?
Replace the attached chart with a new chart ?
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Add Chart to Comment
Confirm Block

Are you sure you want to block %USER_NAME%?

By doing so, you and %USER_NAME% will not be able to see any of each other's's posts.

%USER_NAME% was successfully added to your Block List

Since you’ve just unblocked this person, you must wait 48 hours before renewing the block.

Report this comment

I feel that this comment is:

Comment flagged

Thank You!

Your report has been sent to our moderators for review
Disclaimer: Fulfilling trading operations under conditions of significant leverage, or relatively little changes of the rate of financial tool (currency pair, index, etc.) can cause significant changes to the customer trading account (proportionally to this leverage) . At movement of the market against the customer position he can incur significant loss of part or the whole deposit. The customer is fully responsible for using his financial resources and choosing the trading strategy. Many financial tools have high volatility and/or have significant intraday time ranges of price changes that define high probability of reception of both fast profits and losses from trading operations.
Continue with Google
Sign up with Email