{"id":128804,"date":"2018-06-21T09:43:26","date_gmt":"2018-06-21T13:43:26","guid":{"rendered":"https:\/\/www.countingpips.com\/?p=128804"},"modified":"2018-06-21T06:13:26","modified_gmt":"2018-06-21T10:13:26","slug":"hk50-technical-analysis-weak-chinese-demand-bearish-for-hong-kong-50","status":"publish","type":"post","link":"https:\/\/www.investmacro.com\/forex\/2018\/06\/hk50-technical-analysis-weak-chinese-demand-bearish-for-hong-kong-50\/","title":{"rendered":"HK50: Technical Analysis &#8211; Weak Chinese demand bearish for Hong Kong 50"},"content":{"rendered":"<div id=\"inves-364256893\" class=\"inves-below-title-posts inves-entity-placement\"><div id =\"posts_date_custom\"><div align=\"left\">June 21, 2018<\/div><hr style=\"border: none; border-bottom: 3px solid black;\">\r\n<\/div><\/div><p>By <a href=\"http:\/\/www.ifcmarkets.com\/\" target=\"_blank\" rel=\"noopener\">IFCMarkets<\/a><\/p>\n<p><strong>Weak Chinese demand bearish for HK50<\/strong><\/p>\n<blockquote><p>Falling Hong Kong Purchasing Managers\u2019 Index points to slowing economic growth. Will <a href=\"https:\/\/www.ifcmarkets.com\/en\/trading-conditions\/indices\/hk50\">HK50 <\/a> continue the decline?<\/p><\/blockquote>\n<p>Hong Kong economy\u2019s expansion accelerated in the first quarter. Data after Q1 GDP report were positive on balance: while unemployment, retail sales and trade deficit improved in April, the inflation declined. Recent data however point to weakening demand from China: the Nikkei Hong Kong Purchasing Managers\u2019 Index fell from 49.1 in April to 47.8 in May, the third consecutive decrease. Values below 50 indicate contraction in the private sector. Escalating US-China trade war tensions weighing on China\u2019s economy negatively impact China\u2019s import demand. Weaker Chinese demand is bearish for HK50.<\/p>\n<p style=\"text-align: center; margin-bottom: 20px; margin-top: 20px;\"><img decoding=\"async\" style=\"float: none;\" src=\"https:\/\/ifccd.net\/uploads\/image\/HK50_O_21June2018.png\" alt=\"HK50 price\" width=\"660px\" \/><\/p>\n<p class=\"emailSummary\">On the daily chart the <b> HK50: D1 <\/b> has slipped to the lower bound of the wide trading range where it fluctuated in the last four months. The price is testing the support line (resistance turned into support). It has fallen below the 50-day moving average MA(50) which is turning lower too.<\/p>\n<ul class=\"emailSummary\">\n<li>The <b>Donchian channel <\/b> is neutral: it is flat.<\/li>\n<li>The <a href=\"https:\/\/www.ifcmarkets.com\/en\/ntx-indicators\/parabolic\">Parabolic indicator<\/a> has formed a sell signal.<\/li>\n<li>The <a href=\"https:\/\/www.ifcmarkets.com\/en\/ntx-indicators\/MACD\">MACD indicator <\/a> is below the signal line and the gap is widening, which is bearish.<\/li>\n<li>The <a href=\"https:\/\/www.ifcmarkets.com\/en\/ntx-indicators\/stochastic\"> stochastic oscillator <\/a> has breached into the oversold zone, this is bullish.<\/li>\n<\/ul>\n<p>We believe the bearish momentum will continue after the price closes below lower boundary of Donchian channel at 29260. This level can be used as an entry point for placing a pending order to sell. The stop loss can be placed above last fractal high at 31625.50. After placing the order, the stop loss is to be moved every day to the next fractal high, following Parabolic signals. Thus, we are changing the probable profit\/loss ratio to the breakeven point. If the price meets the stop loss level (31625.50) without reaching the order (29260), we recommend cancelling the order: the market has undergone internal changes which were not taken into account.<\/p>\n<h2 class=\"emailSummary\" style=\"margin-top: 15px !important;\">Technical Analysis Summary<\/h2>\n<table style=\"border: solid 1px black;\" cellspacing=\"0\" cellpadding=\"0\" align=\"left\">\n<tbody>\n<tr>\n<td align=\"left\" valign=\"top\"><b>Position<\/b><\/td>\n<td align=\"left\" valign=\"top\">Sell<\/td>\n<\/tr>\n<tr>\n<td align=\"left\" valign=\"top\"><b>Sell stop<\/b><\/td>\n<td align=\"left\" valign=\"top\">Below 29260<\/td>\n<\/tr>\n<tr>\n<td align=\"left\" valign=\"top\"><b>Stop loss<\/b><\/td>\n<td align=\"left\" valign=\"top\">Above 31625.50<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<p>Market Analysis provided by <a href=\"http:\/\/www.ifcmarkets.com\/\" target=\"_blank\" rel=\"noopener\">IFCMarkets<\/a><\/p><div id=\"inves-2211006555\" class=\"inves-in-content inves-entity-placement\"><hr style=\"border: 1px solid #ddd;\">\r\n<div id=\"inpost_ads_header\">\r\n<p style=\"font-size:10px; float:left; color:#666;\">Free Reports:<\/p><\/div>\r\n<div id=\"inpost_ads\"> \r\n<p style=\"font-size:15px; float:left;\"><a href=\"https:\/\/goo.gl\/1ApBOV\"><img loading=\"lazy\" decoding=\"async\" src=\"https:\/\/investmacro.com\/wp-content\/uploads\/2018\/06\/graph_techs_PD.png\" align=\"left\" width=\"80\"  height=\"55\"\/><\/a>\r\n\t     <a href=\"https:\/\/goo.gl\/1ApBOV\"><b><u>Get Our Free Metatrader 4 Indicators<\/u><\/b><\/a> - Put Our Free MetaTrader 4 Custom Indicators on your charts when you join our Weekly Newsletter<\/p><br><br>\r\n<br>\r\n<br>\r\n<p style=\"font-size:15px; float:left;\"><a href=\"https:\/\/goo.gl\/f3RrHX\"><img loading=\"lazy\" decoding=\"async\" src=\"https:\/\/investmacro.com\/wp-content\/uploads\/2019\/01\/cot_pie_80.png\" align=\"left\" width=\"80\"  height=\"55\"\/><\/a>\r\n\t    <a href=\"https:\/\/goo.gl\/f3RrHX\"><b><u>Get our Weekly Commitment of Traders Reports<\/u><\/b><\/a> - See where the biggest traders (Hedge Funds and Commercial Hedgers) are positioned in the futures markets on a weekly basis.<\/p><br><br>\r\n<\/div>\r\n<hr style=\"border: 1px solid #ddd;\">\r\n<br><\/div>\n","protected":false},"excerpt":{"rendered":"<p>By IFCMarkets Weak Chinese demand bearish for HK50 Falling Hong Kong Purchasing Managers\u2019 Index points to slowing economic growth. Will HK50 continue the decline? Hong Kong economy\u2019s expansion accelerated in the first quarter. Data after Q1 GDP report were positive on balance: while unemployment, retail sales and trade deficit improved in April, the inflation declined. [&hellip;]<\/p>\n","protected":false},"author":3,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[],"tags":[],"class_list":["post-128804","post","type-post","status-publish","format-standard","hentry","no-post-thumbnail"],"_links":{"self":[{"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/posts\/128804","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/users\/3"}],"replies":[{"embeddable":true,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/comments?post=128804"}],"version-history":[{"count":2,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/posts\/128804\/revisions"}],"predecessor-version":[{"id":128821,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/posts\/128804\/revisions\/128821"}],"wp:attachment":[{"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/media?parent=128804"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/categories?post=128804"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/tags?post=128804"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}