Dangle Seng Index Challenges Key Resistance, Gold Costs Climb

HANG SENG INDEX, STRAITS TIMES INDEX, GOLD PRICE OUTLOOK:

• Dangle Seng Index extends rally as tech positive factors. It faces a direct resistance at 25,000
• Singapore’s PM introduced a common election to be held on 10th July. Shares consolidate
• Underpinned by a weaker US Greenback, gold worthsare extending positive factors to US$ 1767

Dangle Seng Index Outlook:

Hong Kong’s Dangle Seng Index inventory market benchmark surged 1.6% yesterday, marking it top-of-the-line performing indices throughout the Asia-Pacific area. The rally was primarily pushed by expertise large Tencent (+4.89%), which accounts for round 11.2% of the index’s weight (desk beneath). Monetary shares AIA (+2.46) and HSBC (+2.04%) have been doing properly too.

As mentioned in an earlier report, the draft of Hong Kong’s safety legislation is unlikely to carry a fabric influence to the Dangle Seng Index, which is closely weighted towards mainland companies. Actually, the implementation of a nationwide safety could even assist to include violence on the street, and thus from a financial viewpoint, to carry social stability to the monetary hub.

Expertise corporations, together with Tencent, Meituan, Alibaba and JD.com have benefited from the Covid-19 pandemic, as extra shoppers search e-commerce, gaming, streaming and different digital providers. The rally in tech shares reveals no signal of ending quickly.

US inventory markets closed larger in a single day, setting a constructive tone for the Asia-Pacific open. Among the many S&P 500 sectors, client discretionary (+1.04%), info expertise (0.70%), communication (+0.61%) and well being care (+0.44%) have been the very best performing ones, whereas utilities (-1.06%), actual property (-0.35%) and client staples (-0.14%) have been lagging behind final night time.

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Dangle Seng Index –Technical Evaluation

The Dangle Seng Index is difficult a key resistance degree at 25,000, which it failed to interrupt above in early Could and June. Will a tech rally empower it with momentum for a significant breakout? The following few days are vital.

The 20-day SMA has crossed above the 50- and 100-Day SMAs, signaling the formation of ‘golden cross’ ought to the worth maintain above 24,000. An instantaneous assist degree might be discovered at 24,100 – the 38.2% Fibonacci extension.

Supply: hsi.com.hk, DailyFX

Dangle Seng Index – Every day Chart

Straits Instances Index:

The Straits Instances Index inventory market benchmark has been consolidating on the 2,600-2,650 space for 2 weeks. Buyers are cautious a few potential second viral wave in main economies and its ramification for the restoration in progress. SGX each day buying and selling quantity has additionally shrank alongside share costs, undermining danger urge for food.

The announcement of a common election to be held on 10th July didn’t carry a lot of a shock and volatility to Singapore’s inventory market. An election now will give the brand new authorities a recent five-year mandate to concentrate on imminent Covid points and long run improvement plans.

Technically, the index has discovered a robust assist at 2,600, the place its 50- and 100-Day SMAs cross.

Gold:

Yesterday, gold worth had a significant breakout above US$ 1,750 – a serious resistance degree. The rally appeared to have legs because the US Greenback Index continued to float decrease. Rising demand for inflation-hedge property might be one other key driver behind gold costs.

Goutdated costs have probably damaged out above an ‘Ascending Triangle’ after piercing by means of US$ 1,750. It has now opened room for extra upside in direction of US$ 1,800 after which US$ 1,870 – the 161.8% Fibonacci extension. The MACD indicator suggests there might be extra upside within the close to time period.

— Written by Margaret Yang, Strategist for DailyFX.com

To contact Margaret, use the Feedback part beneath or @margaretyjy on Twitter