HANG SENG INDEX, SILVER, CRUDE OIL OUTLOOK:Cling Seng Index edged larger to 24,800 in mid-day buying and selling, 25,000 stays ke
HANG SENG INDEX, SILVER, CRUDE OIL OUTLOOK:
- Cling Seng Index edged larger to 24,800 in mid-day buying and selling, 25,000 stays key resistance
- Silver costs entered consolidation after seeing a 15% intra-day swing on Tuesday
- WTI crude oil costs face a key resistance at US$ 42.0
Cling Seng Index Outlook:
The Cling Seng Index (HSI) opened decrease and subsequently erased earlier losses and moved 0.2% larger throughout mid-day buying and selling, lifted by favorable sentiment within the mainland markets. The property sector was outperforming the benchmark index, with CK Asset Holdings (+2.28%), Hyperlink REIT (+2.23%) and Cling Lung Properties (+2.24%) main the beneficial properties in HSI.
The Shanghai Composite surged 1.17% earlier than the lunch break to three,265 – a 3 day excessive. Sector-wise, the Shanghai inventory market was led by biopharmaceutical (+7.25%), residence electrics (+4.84%), chemical substances (+3.5%) and securities (+3.32%) sectors. Client names appears to have carried out the heavy-lifting in mainland inventory markets this week.
Earnings reporting has kicked off on Hong Kong this week, with the height of earnings season coming in August. As Hong Kong’s GDP entered in to sharp contraction this yr on account of Covid-19 headwinds, many native firms are more likely to endure from a plunge in journey, tourism enterprise and a broad slowdown in financial actions. These embrace Sands China, Cathay Pacific, HSBC and a few industrial actual property funding trusts (REITs).
Supply: Bloomberg, Dailyfx
Technically, the HSI remains to be in a consolidation part, with its 50-Day Easy Shifting Common (SMA) line turning into its rapid resistance. The 50-Day SMA is now at 24,938. The HSI has examined a assist at 24,500 and tried to consolidate above this degree.
Cling Seng Index – Each day Chart
Silver Worth Outlook:
Silver costs have been severely overbought on Monday and Tuesday earlier than dramatically getting into right into a correction. The 15% intra-day swing noticed yesterday could have compelled out a variety of speculative positions, as leveraged positions may hardly stand up to such an enormous transfer. Within the mid- to long-term view, nevertheless, valuable metallic costs should still have room to climb towards the backdrop of ultra-low rate of interest and accommodative financial coverage glboally. Rising geopolitical tensions and Covid-19 uncertainties may drive up demand for security.
Technically, silver was severely overbought as recommended by the RSI indicator. A pullback appears to be underway. US$ 26.Zero is a key resistance degree – the 38.2% Fibonacci retracement. Speedy assist might be discovered at
US$ 22.7.
Silver Worth – Each day Chart
Crude Oil Outlook:
The WTI crude oil costs are going through robust resistance at round US$ 42.0, which is the higher certain of a serious ‘hole down’ seen in early March. WTI stays in an upward development, however its bullish momentum appears to have diminished these weeks. A pullback may carry it to US$ 39.5 – the 50-Day SMA.
Crude Oil – Each day Chart
Really useful by Margaret Yang
Don’t give into despair, make a sport plan
— Written by Margaret Yang, Strategist for DailyFX.com
To contact Margaret, use the Feedback part beneath or @margaretyjy on Twitter