HK50 has retraced almost 20% after advice from Gov. on reopenings and easing of China's strict COVID policies to hit the 200-day MA, sloping down in a parallel channel since.
Current market sentiment has declined on re-escalation of COVID related deaths and infections, however the market has yet to correct inline with this, so any continued deterioration will lead a significant move lower.
Furthermore, China's growth prospects (GDP) for 2022/2023 have been slashed by the World Bank, with others yet to decide.
Key resistance sits at 19638 (200D MA), with local resistance of 20096 and local support of 18339. 0.618 retracement sits at 17982, 50% at 17334. I expect a rise to re-challange the 200D MA and reject from 19500.
Current market sentiment has declined on re-escalation of COVID related deaths and infections, however the market has yet to correct inline with this, so any continued deterioration will lead a significant move lower.
Furthermore, China's growth prospects (GDP) for 2022/2023 have been slashed by the World Bank, with others yet to decide.
Key resistance sits at 19638 (200D MA), with local resistance of 20096 and local support of 18339. 0.618 retracement sits at 17982, 50% at 17334. I expect a rise to re-challange the 200D MA and reject from 19500.
Transaction en cours:
Target hit sell @ 19500
Trade fermée: ordre d’arrêt atteint:
SL @ 19700 bounced off from the 200D MA and trading above ichimoku resistance area of 19650. Currently neutral on this until we can see if this bullish momentum can continue (news, further breakthrough the 20096 resistance).
Transaction en cours:
Back in short at 19600, broke the 200D support as expected
Trade fermée: ordre d’arrêt atteint:
SL @ 19800, took a break today after worse than expected China factory data, but what do you know seems that is not enough for the market to give up it's hopes. Prob won't touch this until it makes a >5% break.