HANG SENG INDEX, GOLD, CRUDE OIL PRICE OUTLOOK:Hong Kong’s Dangle Seng index climbed a second day to 25,300, led by monetary sect
HANG SENG INDEX, GOLD, CRUDE OIL PRICE OUTLOOK:
- Hong Kong’s Dangle Seng index climbed a second day to 25,300, led by monetary sector
- Gold costs tried to stabilize round US$ 1,910 – the 61.8% Fibonacci retracement
- Crude oil costs superior on vaccine hopes, bettering knowledge
Dangle Seng Index Outlook:
Hong Kong’s Dangle Seng Index inventory benchmark superior for a second day as monetary shares rallied. Sectoral rotation was clearly noticed within the Hong Kong market today, as traders switched out from expertise shares into banking names forward of the evaluate of the US-China section one commerce deal. As Tencent’s WeChat and different Chinese language apps will probably be placed on the desk of those discussions, danger urge for food is more likely to stay weak till the political skies clear.
Tencent – the most important listed expertise firm in Hong Kong – has introduced better-than-expected 2Q earnings after market shut on Wednesday, citing hope of a inventory value rally in the present day. Nevertheless, the upside is maybe restricted by a technical resistance at HK$ 560 and the danger of a possible US ban on WeChat.
Sector-wise, properties (+2.18%) was the very best performing section on Wednesday, whereas financials (+1.96%) contributed two thirds of the index’ achieve. HSBC (+4.84%) and AIA (+3.03%) had been the very best performing index parts.
Moreover, Japan’s PPI and Australia’s jobs report are the important thing macroeconomic occasions on Thursday.
Dangle Seng Index Sector efficiency 12-8-2020
Supply: hsi.com.hk
Technically, the Dangle Seng index has damaged the ‘descending channel’ from the upside as proven within the chart beneath. It has since opened the room for extra upside in the direction of 25,200 after which 25,800 – the 50% and 38.2% Fibonacci retracements, respectively. Two bullish candle sticks fashioned this week exhibiting sturdy upward momentum, which can drive the index increased in the direction of 25,800 within the days to return.
Dangle Seng Index – Day by day Chart
Gold Value Outlook:
Gold costs stabilized at round US$ 1,910 following its greatest two-day selloff since 2013 on Wednesday. Favorable inventory market sentiment and vaccine hopes are dampening the demand for security, and thus might have catalyzed the selloff in gold and silver this week. Yields on the 10-year US treasuries rose to 66 bps – a one month excessive. Larger treasury yields mirror rising inflation prospects, which can result in a extra hawkish-biased Fed down the highway. These are placing weight on anti-fiat valuable metals too.
Technically, gold costs have reached the 76.4% Fibonacci retracement degree at US$ 1,870 earlier than bouncing again to US$ 1,943 – the 50% Fibonacci retracement. The value might begin to stabilize between US$ 1,910 and US$ 1,942 in the present day after two, extraordinarily risky buying and selling periods.
Gold Value – Day by day Chart
Crude Oil Value Outlook:
Technically, the WTI crude oil costs have risen to a key resistance degree at US$ 42.8 – the 61.8% Fibonacci retracement degree. Within the Fibonacci research, 61.8% is the so known as ‘golden ratio’ and thus it normally serves as a key resistance or help degree in buying and selling. Breaking above this degree will probably open up room for extra upside in the direction of US$ 48.5 after which US$ 51.7.
WTI Crude Oil Value – Day by day Chart
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