Last week’s soft CPI report showed that China has not escaped deflationary pressures and today’s data reaffirmed the weak consumer demand environment, as retail sales rose just 2% y/y in June and the worst print since late-2022. Adding to the woes, the economy grew by 4.7% y/y in Q2 and the slowest pace in more than a year. HKG33 slips after the new disappointing...
China’s post pandemic recovery is bumpy, troubled by a distressed property market, subdued factory activity and weak consumer demand. Today’s data showed that the country has not escaped deflationary pressures, with CPI hovering around zero for more than a year now. Inflation came in at +0.2% y/y in June, lower than expected and the weakest since January. On a...
The relief rally of the past four-months fades as HKG33 concluded a four-week losing streak, leading to a challenge of pivotal support levels. The Hong Kong index tests the 38.2% Fibonacci of this year’s low/high advance, creating risk for a deeper correction towards the 61.8% level. China’s post pandemic recovery is bumpy, underscored by distressed property...
HS50 - 24h expiry - We look to Sell at 18100 (stop at 18300) Although the bears are in control, the stalling negative momentum indicates a turnaround is possible. A higher correction is expected. The bias is still for lower levels and we look for any gains to be limited. We therefore, prefer to fade into the rally with a tight stop in anticipation of a move...
HS50 - 24h expiry - We look to Sell at 19220 (stop at 19405) Price action looks to be forming a top. The 200 day moving average should provide resistance at 19235. This is negative for sentiment and the downtrend has potential to return. Preferred trade is to sell into rallies. Further downside is expected although we prefer to sell into rallies close to the...
HS50 - 24h expiry - We look to Buy at 19450 (stop at 19250) We are trading at overbought extremes. A lower correction is expected. Short term bias has turned positive. We therefore, prefer to fade into the dip with a tight stop in anticipation of a move back higher. Further upside is expected although we prefer to buy into dips close to the 19430 level. Our...
HS50 - 24h expiry - We look to Sell at 19469 (stop at 19619) Although the bulls are in control, the stalling positive momentum indicates a turnaround is possible. Price action looks to be forming a top. The 200 day moving average should provide resistance at 19458. This is negative for short term sentiment and we look to set shorts at good risk/reward levels...
HS50 - 24h expiry - We look to Sell at 20305 (stop at 20425) We are trading at overbought extremes. A Doji style candle has been posted from the high. This is negative for short term sentiment and we look to set shorts at good risk/reward levels for a further correction lower. Further downside is expected although we prefer to sell into rallies close to the...
HS50 - 24h expiry - We look to Buy at 20260 (stop at 20090) Selling pressure from 20753 resulted in all the initial daily gains being overturned. The current move lower is expected to continue. Short term bias is mildly bullish. We therefore, prefer to fade into the dip with a tight stop in anticipation of a move back higher. Further upside is expected...
HS50 - 24h expiry - We look to Sell a break of 20150 (stop at 20455) Previous support located at 20250. Previous resistance located at 20500. Price action has stalled at good resistance levels and currently trades just below here (20600). We expect a reversal in this move. A move through 20150 will confirm the bearish momentum. Our profit targets will be...
HS50 - 24h expiry - We look to Sell at 19820 (stop at 20150) Although the bears are in control, the stalling negative momentum indicates a turnaround is possible. A higher correction is expected. The medium term bias remains bearish. We therefore, prefer to fade into the rally with a tight stop in anticipation of a move back lower. Further downside is...
HS50 - 24h expiry - We look to Buy at 20900 (stop at 20670) Although the bears are in control, the stalling negative momentum indicates a turnaround is possible. A higher correction is expected. The hourly chart technicals suggests further downside before the uptrend returns. We look to buy dips. Although the anticipated move higher is corrective, it does...
HSI1! 2022 MAR 21 Week 18037 support returned strongly. Wait for reaction at 22703 as market returns to test previous breakdown and channel area. Weekly: Ultra High volume up bar closing on high = possible weakness Daily: Very high volume reversal followed by average volume up bar = strength H4: Market up on reducing bullish volume = weakness Entry...
HSI1! 2022 MAR 14 Week With the break of 21000, next level to test will be 18XXX region. Weekly: High volume down bar closing at low = weakness Daily: High volume down bar closing at low = weakness H4: Low vol down bar closing at low = weakness Entry will be based off the price reaction to levels Short on Test and Reject) | Long on Test and Accept Have...
HSI1! 2022 FEB 28 Week Short preference last week proved very fruitful. The spring over the last daily bar shows rejection of lower prices and demand overcoming supply (D/S). Scenarios: 1) Long on dip opportunity in the 22389-23000 region as temporary strength returns 2) Should Support 22389 fail, short opportunity on test of break down area to next...
HSI1! 2022 FEB 14 Week Market tested again previous supply area. - No higher high was made - No commitment as market nears recent high. Temporary weakness expected for long opportunity on retracement. Weekly: Average volume up bar closing off high = weakness Daily: Average volume down bar closing on low = weakness H4: Temporary weakness Entry will be...
HSI1! 2022 FEB 07 Week Temporary weakness expected as market is resisted at 24600. Preference is to long on retracement. Weekly: Very Low Volume up bar closing near high = weakness Daily: Very low volume up bar closing near high = weakness H4: Temporary weakness Entry will be based off the price reaction to these levels Short on Test and Reject) | Long...
HSI1! 2022 JAN 17 Week Last week scenario 1 played out - HS exited trend line, breakout was tested and now price is at a previous supply zone. (24391 and HTF brown dashed trend line) Possible scenarios are mapped out 1) Break of 24391 and resistance becomes support 2) Pullback below 24391 to test for supply before continuing on the uptrend 3) Do note the...