Improving Hong Kong data bullish for HK50
Contraction in Hong Kong business sector slowed in December. Will the HK50 continue rising?
Latest Hong Kong economic data were positive: the Foreign Exchange Reserves in Hong Kong increased to $424.6 billion in December from 423.2 billion in November. In Hong Kong, Foreign Exchange Reserves are the foreign assets, besides gold and foreign currencies, controlled by the country’s central bank. They hit all time high of $443.4 billion in February of 2018. At the same time contraction in private sector slowed as indicated by the up-tick in Nikkei’s Purchasing Managers’ Index to 48 from 47.1. Improving economic data are bullish for Hong Kong stock index.
On the 4-hour timeframe the HK50: H4 is above the 61.8 Fibonacci level, this is bullish.
Technical Analysis Summary
Position Buy
Buy stop Above 26579.7
Stop loss Below 25810.4
Contraction in Hong Kong business sector slowed in December. Will the HK50 continue rising?
Latest Hong Kong economic data were positive: the Foreign Exchange Reserves in Hong Kong increased to $424.6 billion in December from 423.2 billion in November. In Hong Kong, Foreign Exchange Reserves are the foreign assets, besides gold and foreign currencies, controlled by the country’s central bank. They hit all time high of $443.4 billion in February of 2018. At the same time contraction in private sector slowed as indicated by the up-tick in Nikkei’s Purchasing Managers’ Index to 48 from 47.1. Improving economic data are bullish for Hong Kong stock index.
On the 4-hour timeframe the HK50: H4 is above the 61.8 Fibonacci level, this is bullish.
- The Parabolic indicator gives a buy signal.
- The Donchian channel indicates uptrend: it is widening up.
- The MACD indicator gives a bearish signal: it is above the signal line and the gap is narrowing.
- The Stochastic oscillator is falling but has not reached the oversold zone.
Technical Analysis Summary
Position Buy
Buy stop Above 26579.7
Stop loss Below 25810.4