Technical Analysis HK50 : 2020-09-11

IFC Markets

Master Trader
Oct 31, 2012
London (Great Britain)
Recommendation for Hang Seng Index: Sell

Sell Stop : Below 24193.4

Stop Loss : Above 25827.1

Donchian ChannelNeutral
Parabolic SARSell

Chart Analysis
IFC Markets Tech Analysis

On the daily timeframe the HK50: Daily has fallen below the support line and is retreating under the 200-day moving average MA(200) which is falling itself. We believe the bearish momentum will continue after the price breaches below the lower boundary of Donchian channel at 24193.4. A level below this can be used as an entry point for placing a pending order to sell. The stop loss can be placed above 25827.1. 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 expected profit/loss ratio to the breakeven point. If the price meets the stop loss level (25827.1) without reaching the order (24193.4), we recommend cancelling the order: the market has undergone internal changes which were not taken into account

Fundamental Analysis

Hong Kong private sector activity contraction accelerated in August. Will the HK50 retreat continue?