Hugo
0
All posts from Hugo
Hugo in HTO Trading,

Hang Seng: Makes a new year low

China accelerates reforms to aid economy, the mainland is likely to roll out fresh reforms and push ahead with stalled pro-market measures during this quarter as part of efforts to help revive the economy and rescue the stock market, according to financial analysts.

In Hong Kong, the Hang Seng Index tumbled 20% for its worst quarterly performance since 2011. However, there is an emerging consensus among economists that real growth in China is lower.

Activity at larger, Chinese state factories shrank for a second straight month in September, but the pace of contraction was slower than in August.

The Shanghai Futures Exchange is closed until Wednesday for a week of national holidays.

Since the beginning of the year the Hang Seng fell more than 10.5% and is in a bearish phase since 24th of August. Last week the Index made new low but bounced back up with a wide range and closed in the green near the high of the week. Stochastic is showing an oversold market and is showing bullish momentum although is still below the 50 mid line.

Expecting an upward move to a weekly resistance at 23,144 on a break above previous week high at 21,522 (scenario 1) or a bounce from a weekly support at 20,720 could push the Index upward to a weekly resistance at 22,491 (scenario 2).

HKInd is a CFD written over Hang Seng futures.