HANG SENG INDEX, GOLD, SILVER PRICE OUTLOOK:Hold Seng Index might face promoting strain as US tech rally fadesGold worth climbed
HANG SENG INDEX, GOLD, SILVER PRICE OUTLOOK:
- Hold Seng Index might face promoting strain as US tech rally fades
- Gold worth climbed to 9-year excessive of US$ 1,842, breaking key resistance at US$ 1,810
- Silver worth surged to US$ 22.22, registering a 14.86% acquire in three days
Hold Seng Index Outlook:
The Hold Seng Index (HSI) might face some promoting strain on Wednesday after US know-how corporations retraced within the prior buying and selling session. Buyers are scrutinizing Covid-19 virus developments across the globe and more and more query the ‘bubble-like’ rally of the Nasdaq index.
The Hold Seng Indexes Firm Restricted will launch the Hold Seng Tech Index on 27 July, 2020, which observes the 30 largest listed know-how corporations in HK. It could have among the most precious Chinese language internet corporations as its constituents, together with Alibaba Group Holding (+7.26%), Tencent (+7.94%), Meituan (+8.81%)and possibly the upcoming Ant Monetary after its debut on the HKEX. Share costs of those know-how corporations surged following the information.
Sector–sensible, Commerce & Business was main HSI positive aspects yesterday, with Tencent alone contributing 40% of the index’s each day acquire. Utilities and Properties have been lagging behind (chart beneath).
Hold Seng Index Sector Efficiency21-7-2020
Supply: hsi.com.hk, Dailyfx
Technically, Hold Seng index has discovered assist at 25,000. A technical correction at round 25,500 in all probability received’t change its upward development within the close to time period. Holding above 25,000 may pave strategy to try increased highs round 26,000 – a 61.8% Fibonacci retracement degree.
Hold Seng Index – Each day Chart
Gold Worth Outlook:
Gold worth is buying and selling at a 9-year excessive of US$ 1,840 and should try and problem the all-time excessive seen in Sep 2011 – US$ 1,920. The outstanding rally was maybe pushed by the European Union’s historic stimulus package deal, which is able to inject much more liquidity into the monetary system. Uncertainties surrounding the Covid-19 pandemic might have additionally underpinned valuable metallic costs as demand for security surges.
Technically, gold costs have damaged a key resistance at US$ 1,810 and moved decisively increased. The uptrend stays intact. Instant resistance will be discovered on the 161.8% Fibonacci extension at US$ 1,872.
Gold Worth – Month-to-month Chart
Silver Worth Outlook:
Silver costs surged for a 3rd day to US$ 22.3, marking a three-day acquire of 14.8%.
Technically, silver worth has soared to a 7-year excessive at US$ 22.3, with no fast resistance degree discovered within the close to time period. A technical correction, nevertheless, is feasible as the worth has been severely overbought from a technical viewpoint. This, nevertheless, is unlikely to vary its bullish development within the medium time period.
Silver Worth – Each day Chart
Really useful by Margaret Yang
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— Written by Margaret Yang, Strategist for DailyFX.com
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