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MNI is the leading provider
of intelligence and analysis on the Global Fixed Income, Foreign Exchange and Energy markets. We use an innovative combination of real-time analysis, deep fundamental research and journalism to provide unique and actionable insights for traders and investors. Our "All signal, no noise" approach drives an intelligence service that is succinct and timely, which is highly regarded by our time constrained client base.Our Head Office is in London with offices in Chicago, Washington and Beijing, as well as an on the ground presence in other major financial centres across the world.
HONG KONG STOCKS
The Hang Seng Index has has tumbled in tandem with most of its regional peers today, as the risk-off tone of Tuesday's NY session spilled over into Asia, while Hong Kong authorities suspended vaccinations with the BioNTech Covid-19 jab, citing packaging defects in a single batch of doses. The index last sits just above the 28,000 mark.
- Today's move has allowed the index to enter technical correction, as Hang Seng has now weakened by more than 10% since its Feb 18 peak.
- With today's downswing, the index has completed a head and shoulders pattern, signalling scope for a deeper sell-off.
- The slide off the Feb 18 peak was heralded by a bearish divergence in the RSI, which is still some way off from oversold territory as we type.
- Mind that price action over the last two weeks or so was underpinned by a below-average and generally declining volume.
- The rate has attacked its 100-DMA (27,889), which was intact since early Nov. A clean break below there would confirm that bears are taking control, bringing the 200-DMA at 26,321 & key support from Dec 22 low of 25,999 into view.
- Bulls look for a rebound above the 28,260 neckline of the head and shoulders formation, before taking aim at the 50-DMA/Mar 18 high at 29,330/29,597.
Fig. 1: Hang Seng Index
Source: MNI - Market News/Bloomberg
Why MNI
MNI is the leading provider
of intelligence and analysis on the Global Fixed Income, Foreign Exchange and Energy markets. We use an innovative combination of real-time analysis, deep fundamental research and journalism to provide unique and actionable insights for traders and investors. Our "All signal, no noise" approach drives an intelligence service that is succinct and timely, which is highly regarded by our time constrained client base.Our Head Office is in London with offices in Chicago, Washington and Beijing, as well as an on the ground presence in other major financial centres across the world.
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