Recommendation for Hang Seng Index: Sell
Sell Stop : Below 24468.6
Stop Loss : Above 25196
| Indicator | Value | Signal |
|---|---|---|
| RSI | Neutral | |
| MACD | Sell | |
| Donchian Channel | Sell | |
| MA(200) | Sell | |
| Fractals | Sell | |
| Parabolic SAR | Sell |
Chart Analysis
On the 4-hour timeframe the HK50: H4 is retracing toward the 200-period 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 24468.6. 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 25196.0. 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 (25196) without reaching the order (24468.6), 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 deepened in August. Will the HK50 retreat continue?