ASX 200, HSI 50, Nikkei 225, APAC Indexes Speaking Factors:ASX 200 sliced by way of 12-week uptrend after RSI dipped forward of g
ASX 200, HSI 50, Nikkei 225, APAC Indexes Speaking Factors:
- ASX 200 sliced by way of 12-week uptrend after RSI dipped forward of getting into overbought territory
- Nikkei 225 falls simply shy of erasing yearly losses, transferring common help beckons
- Dangle Seng Index (HSI 50) reverses at yearly downtrend. Is that this the beginning of an additional decline?
ASX 200 Every day Value Chart
Supply – Buying and selling View
A major bearish response on the key 61.8% Fibonacci retracement (6,124), of the yearly vary, catapulted the ASX 200 by way of the 12-week uptrend from the March low (4,387), because the RSI dipped simply previous to registering its first overbought readings since early-January.
The 2009 pattern resistance zone appears to be a formidable impediment for consumers because the convergence of key technical indicators could proceed to exert draw back stress on the Australian benchmark.
The exponential enhance in quantity confirms the Bearish Engulfing candle on June 11 and will sign an impending reversal, because the momentum indicator bounces away from yearly resistance and the RSI snaps its 3-month pattern.
A every day shut beneath the 50-MA (5,710) might carve a path again to the Might low (5,166) and sign a resumption of the first downtrend.
Nikkei 225 Every day Value Chart
Supply – Buying and selling View
The Nikkei 225 has outperformed nearly all of its main counterparts, because the Japanese benchmark got here factors away from erasing the yearly losses brought on by the COVID-19 pandemic.
Surging as a lot as 52% from the recent 4-year lows set in March (15,338) costs climbed again above the 2009 uptrend, because the Relative Power Index (RSI) burst into overbought territory for the primary time since November 2019.
Nevertheless, the RSI dipping again beneath 70 energized sellers, because the Nikkei sliced simply by way of the uptrend from the March lows earlier than discovering help on the March excessive (21,731).
Because the momentum indicator fades from its most excessive readings since April, there could also be potential for a sustained correction ought to worth breach supportive convergence on the 200-MA (21,350)and decrease sure of the 2009 uptrend (21,200).
A every day shut beneath the 50-MA (21,100) and 61.8% Fibonacci (20,795) might see worth slide again to the 50% Fibonacci (19,753) of the yearly vary with the Might low (19,080) the subsequent key area of curiosity.
Dangle Seng Index Every day Value Chart
Supply – Buying and selling View
The Hong Kong benchmark kicked off June in explosive vogue, gapping 2.5% larger on the primary day of commerce for the month, earlier than surging to the 50% Fibonacci retracement (25,157) of the yearly vary.
Climbing as a lot as 20% from the March low (21,139), worth appeared destined to push again to the 200-day transferring common (25,683) with market participant focus fastened on the March 6 breakaway hole and its convergence with the 61.8% Fibonacci (26,105).
Nevertheless, the 2014 excessive (25,363) proved to be a step too far for the HSI with worth collapsing again by way of the 50-MA (24,271) because the Relative Power Index (RSI) sharply reversed simply shy of overbought territory.
With the momentum indicator suggesting that the latest rally could also be operating out of steam, a pull-back to the June low (23,540) could possibly be on the playing cards with the uptrend from the yearly low and 23.6% Fibonacci (23,035) offering the final line of defence for worth.
Value could look to re-visit the yearly low (21,139) ought to the 12-week uptrend fail to carry, with a detailed beneath the psychologically imposing 23,000-handle presumably invigorating sellers and resulting in a resumption of the first downtrend.
— Written by Daniel Moss
Observe me on Twitter @DanielGMoss
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