Hong Kong shines in search of highs
The Asian indices got off to a strong start today. The Hang Seng Index (Ticker AT: HKIND) has broken out of the long-running downtrend channel in the direction of 9-month old price zones. Stocks returned to 15-month highs today as the Fed cut numbers may help or halt the market's evolution. Today we have as we said releases from the Vice Chairman and the President and CEO of the Cleveland (Ohio) Fed Philip N. Jefferson and the Loretta J. Mester. Beijing has reported a welcome cut in Chinese inflation, helping to undo concerns of prolonged deflation in the markets. The retail and industrial sales forecast put an end to that on Friday. The Chinese government has been able to sell 1 trillion yuan (128.045 billion euros) to maintain its domestic economic stimulus measures. Blue chips felt it the most with 0.1% growth. Even the Asia-Pacific market of the MSCI index grew by 0.1% unlike the Japanese Nikkei which fell by 0.3% due to the interest rate hike implemented by the Bank of Japan.
Looking at the chart, the channel bounced off its January lows and has been building in a slightly bullish sideways movement. On April 18th the figure marked a strong move to the upside which coincides with the FED releases and the expectations that were held, turning the market upside down. Currently the market has touched the 19280 point zone and is looking to pierce the resistance zone indicated in green at 19437.89 points.
If this zone is overcome, nothing will prevent the Chinese market to shine again at highs.
Ion Jauregui - AT Analyst
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The information provided does not constitute investment research. The material has not been prepared in accordance with the legal requirements designed to promote the independence of investment research and such should be considered a marketing communication.
All information has been prepared by ActivTrades ("AT"). The information does not contain a record of AT's prices, or an offer of or solicitation for a transaction in any financial instrument. No representation or warranty is given as to the accuracy or completeness of this information.
Any material provided does not have regard to the specific investment objective and financial situation of any person who may receive it. Past performance is not reliable indicator of future performance. AT provides an execution-only service. Consequently, any person acing on the information provided does so at their own risk.
Looking at the chart, the channel bounced off its January lows and has been building in a slightly bullish sideways movement. On April 18th the figure marked a strong move to the upside which coincides with the FED releases and the expectations that were held, turning the market upside down. Currently the market has touched the 19280 point zone and is looking to pierce the resistance zone indicated in green at 19437.89 points.
If this zone is overcome, nothing will prevent the Chinese market to shine again at highs.
Ion Jauregui - AT Analyst
*******************************************************************************************
The information provided does not constitute investment research. The material has not been prepared in accordance with the legal requirements designed to promote the independence of investment research and such should be considered a marketing communication.
All information has been prepared by ActivTrades ("AT"). The information does not contain a record of AT's prices, or an offer of or solicitation for a transaction in any financial instrument. No representation or warranty is given as to the accuracy or completeness of this information.
Any material provided does not have regard to the specific investment objective and financial situation of any person who may receive it. Past performance is not reliable indicator of future performance. AT provides an execution-only service. Consequently, any person acing on the information provided does so at their own risk.
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