HK50 is need of direction - levels to watch
China has been performing well of late as capital flows towards the geography with the most accommodative central bank and increased liquidity. After a solid rally from the mid-May lows were seeing the HK50 print a series of lower lows and highs, although the wicks are getting longer suggesting there is still solid buying pressure into weakness. We see the price now curbed at the 20-day MA, ahead of the rising TL support.
Our analysts see the TL holding for now, with a renewed push into 22,310 offering increased confidence of a push higher and the potential for trending conditions. An upside break of 22,100 would give this call increased confidence. If the TL gives way, we see double top neckline support at 20595, where a break here targets the May lows and even 18,850.
Levels to guide on the daily timeframe
Our analysts see the TL holding for now, with a renewed push into 22,310 offering increased confidence of a push higher and the potential for trending conditions. An upside break of 22,100 would give this call increased confidence. If the TL gives way, we see double top neckline support at 20595, where a break here targets the May lows and even 18,850.
Levels to guide on the daily timeframe
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