HANG SENG NEWS AND TECHNICAL ANALYSIS – 09 December 2022
09 Dec 2022
Hong Kong stocks notch 2%; China reports inflation data in line with expectations
The Hang Seng Index led gains in Asia-Pacific as China inflation data came in roughly in line with expectations.
Hong Kong’s Hang Seng index advanced more than 2%, while the Hang Seng Tech Index rose 2.45%. Mainland China’s Shenzhen Component was 0.556% higher while the Shanghai Composite inched up 0.3%.
China’s consumer price index rose 1.6% in November on an annualized basis, while its producer price index fell 1.3%
Shares of Hong Kong-listed real estate and tech companies popped in Asia’s session as positive sentiment persists around China’s reopening.
Investors caught off-guard by China’s dramatic COVID policy pivot are betting on both greed and fear as the economy starts to gradually reopen, snapping up shares in businesses from travel agencies and casinos to funeral companies.
The positioning for both the bright and dark side of China’s COVID pivot reflects growing concerns from investors surprised by the rapid policy change, especially as COVID vaccination rates among the elderly remain relatively low.
HANG SENG TECHNICAL ANALYSIS
In the daily chart, Hang Seng is currently trading in the up channel.
Hang Seng is currently trading above all SMA
RSI is in buying zone which suggests bullishness and Stochastic suggests an up trend.
Hang Seng’s immediate resistance is at 19991 & its immediate support level is at 19438
HOW TO TRADE HANG SENG INDEX IN THIS WEEK
HANG SENG is moving in the up channel; it will remain in the up channel until any trend reversal. So, remain bullish on it.