HANG SENG LOOKING MIXED/BULLISH AMID EARNINGS AND TRADE TENSIONS
Hang Seng ended up 1.5% on Tuesday led by gains in stocks of property firms which gained about 2.6% for the day. The gains in property stocks came after developer Country Garden said it expected optimistic first-half results and was the top gainer among Hang Seng stocks for the day.
The property sector and the IT sector inched up 2.5% and 1.36% respectively for the day. The worst performer was WH Group ltd. which closed down 0.81%. As of the previous close, Hang Seng has lost about 2.67% this month. According to market sources, about 1.60 billion Hang Seng index shares were traded today up from the previous trading session volume of 1.49 billion. So far this week, the market capitalization of the Hang Seng index has risen by 0.46 percent.
China will release its Consumer Price Index YoY and MoM on Wednesday which will affect Hang Seng also. The forecast for China CPI YoY and MoM is 1.9% and 0.2% respectively.
On the technical front, the RSI is currently at 46.64% and suggests that the market can move in the upward direction. The %K has crossed the % D from below to the upside at 12.01%, and this suggests that the market may head upwards. The price is also below the middle line of the Bollinger bands and is going upwards. The current price is above the 5 day moving average. So, overall it is looking mixed to bullish.
Trade Suggestion-Buy At: 28000, Take Profit At: 28200 Stop Loss At: 27900