News & Analysis at your fingertips.

We use a range of cookies to give you the best possible browsing experience. By continuing to use this website, you agree to our use of cookies.
You can learn more about our cookie policy here, or by following the link at the bottom of any page on our site.

0

Notifications

Notifications below are based on filters which can be adjusted via Economic and Webinar Calendar pages.

Live Webinar

Live Webinar Events

0

Economic Calendar

Economic Calendar Events

0
Free Trading Guides
EUR/USD
Bullish
Oil - US Crude
Bullish
Wall Street
Mixed
Low
High
of clients are net long.
of clients are net short.
Long Short

Note: Low and High figures are for the trading day.

Data provided by
Gold
Bullish
Low
High
of clients are net long.
of clients are net short.
Long Short

Note: Low and High figures are for the trading day.

Data provided by
GBP/USD
Bullish
USD/JPY
Bearish
More View more
Real Time News
  • #Oil prices saw a reprieve to the recent selling pressure but remain at risk while below downtrend resistance. Here are the levels that matter on the #WTI technical chart. Get your #commodities update from @MBForex here: https://t.co/CcXsF3JCMH https://t.co/RUmS1cX52v
  • Forex liquidity makes it easy for traders to sell and buy currencies without delay, and also creates tight spreads for favorable quotes. Low costs and large scope to various markets make it the most frequently traded market in the world. Learn more here: https://t.co/5uSWKoLkd6 https://t.co/boEI8RuQdC
  • The growth-linked New Zealand Dollar may rise on the upcoming #RBNZ rate decision following rosy economic data. However, downside potential in the S&P 500 could offset $NZDUSD gains. Get your #currencies update from @ddubrovskyFX here: https://t.co/LfCe6C6G3P https://t.co/kUeBxxeaEf
  • It was a quiet week in Aussie as $AUDUSD put in its second consecutive week of indecision. But taking a more granular look highlights the potential for a reversal scenario. Get your #currencies update from @JStanleyFX here: https://t.co/PPK20nubAf https://t.co/0nfmRRFNnz
  • The S&P 500 pushed the market's comfort with a head-and-shoulders pattern through Friday's close. What should we look for in technical patterns, overlapping fundamental tides and speculative positioning for the likes of $EURUSD next week? https://www.dailyfx.com/forex/video/daily_news_report/2020/09/19/EURUSD-Pressure-Building-while-Anxious-Traders-Weigh-Did-SP-500-Break.html?ref-author=Kicklighter&QPID=917719&CHID=9 https://t.co/lgVJVwi8th
  • Sterling remains trapped by overarching fundamentals drivers and both $GBPUSD and $EURGBP are going to have to wait until the Brexit dust settles. Get your #currencies update from @nickcawley1 here: https://t.co/vF1K1cy0nd https://t.co/NSA7qiQihc
  • Key levels in forex tend to draw attention to traders in the market. These are psychological prices which tie into the human psyche and way of thinking. Learn about psychological levels here:https://t.co/1oygcFMFNs https://t.co/d9EmTOHyTv
  • Traders tend to overcomplicate things when they’re starting out in the forex market. This fact is unfortunate but undeniably true.Simplify your trading strategy with these four indicators here:https://t.co/A4dqGMPylo https://t.co/xqbUxwWgTZ
  • An economic calendar is a resource that allows traders to learn about important economic information scheduled to be released. Stay up to date on the most important global economic data here: https://t.co/JdvW6HNuqV https://t.co/Gi8LHCT5sB
  • The AB=CD pattern is simple once you know how to spot it and draw the proper Fibonacci retracements. Make your trading strategy as simple as ABCD here: https://t.co/AKmlmaAZBS https://t.co/FFmRYyx4ou
Hang Seng Index May See Technical Pullback, Gold and Silver Advance

Hang Seng Index May See Technical Pullback, Gold and Silver Advance

2020-07-22 01:00:00
Margaret Yang, CFA, Strategist
Share:

HANG SENG INDEX, GOLD, SILVER PRICE OUTLOOK:

  • Hang Seng Index may face selling pressure as US tech rally fades
  • Gold price climbed to 9-year high of US$ 1,842, breaking key resistance at US$ 1,810
  • Silver price surged to US$ 22.22, registering a 14.86% gain in three days

Hang Seng Index Outlook:

The Hang Seng Index (HSI) may face some selling pressure on Wednesday after US technology firms retraced in the prior trading session. Investors are scrutinizing Covid-19 virus developments around the globe and increasingly question the bubble-like’ rally of the Nasdaq index.

The Hang Seng Indexes Company Limited will launch the Hang Seng Tech Index on 27 July, 2020, which tracks the 30 largest listed technology companies in HK. It will have some of the most valuable Chinese internet companies as its constituents, including Alibaba Group Holding (+7.26%), Tencent (+7.94%), Meituan (+8.81%)and probably the upcoming Ant Financial after its debut on the HKEX. Share prices of these technology firms surged following the news.

Sector-wise, Commerce & Industry was leading HSI gains yesterday, with Tencent alone contributing 40% of the index’s daily gain. Utilities and Properties were lagging behind (chart below).

Hang Seng Index Sector Performance21-7-2020

Hang Seng Index May See Technical Pullback, Gold and Silver Advance

Source: hsi.com.hk, Dailyfx

Technically, Hang Seng index has found support at 25,000. A technical correction at around 25,500 probably won’t change its upward trend in the near term. Holding above 25,000 could pave way to attempt higher highs around 26,000 – a 61.8% Fibonacci retracement level.

Hang Seng IndexDaily Chart

Hang Seng Index May See Technical Pullback, Gold and Silver Advance

Gold Price Outlook:

Gold price is trading at a 9-year high of US$ 1,840 and may attempt to challenge the all-time high seen in Sep 2011 – US$ 1,920. The remarkable rally was perhaps driven by the European Union’s historic stimulus package, which will inject even more liquidity into the financial system. Uncertainties surrounding the Covid-19 pandemic may have also underpinned precious metal prices as demand for safety surges.

Technically, gold prices have broken a key resistance at US$ 1,810 and moved decisively higher. The uptrend remains intact. Immediate resistance can be found at the 161.8% Fibonacci extension at US$ 1,872.

Gold PriceMonthly Chart

Hang Seng Index May See Technical Pullback, Gold and Silver Advance

Silver Price Outlook:

Silver prices surged for a third day to US$ 22.3, marking a three-day gain of 14.8%.

Technically, silver price has soared to a 7-year high at US$ 22.3, with no immediate resistance level found in the near term. A technical correction, however, is possible as the price has been severely overbought from a technical point of view. This, however, is unlikely to change its bullish trend in the medium term.

Silver PriceDaily Chart

Hang Seng Index May See Technical Pullback, Gold and Silver Advance
Building Confidence in Trading
Building Confidence in Trading
Recommended by Margaret Yang, CFA
Don’t give into despair, make a game plan
Get My Guide

--- Written by Margaret Yang, Strategist for DailyFX.com

To contact Margaret, use the Comments section below or @margaretyjy on Twitter

DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.

DISCLOSURES