HK50 Analysis: Deteriorating Hong Kong data bearish for HK50

September 11, 2020

By IFCMarkets.com

Deteriorating Hong Kong data bearish for HK50

Recent Hong Kong economic data were weak. Business activity contraction accelerated in August, retail sales decline continued in July, and balance of trade deficit was bigger than expected. Thus, Markit reported Hong Kong PMI fell to 44.0 in August from 44.5 a month earlier. Readings below 50 indicate sector activity contraction. Retail sales fell 23.9% over year in July after 25.3% drop in June. And balance of trade deficit was H$29.8 billion after H$33.3 billion in June when a narrowing to H$27 billion was forecast. And industrial production report due Monday is expected to show manufacturing production dropped 9.5% over year in the second quarter in Hong Kong after a 4.6% decline in the first quarter of 2020. Deteriorating Hong Kong economic activity is bearish for HK50.

Indicator VALUE Signal
RSI Neutral
MACD Sell
Donchian Channel Neutral
MA(200) Sell
Fractals Sell
Parabolic SAR Sell

 

Summary of technical analysis

Order Sell
Buy stop Below 24193.4
Stop loss Above 25827.1

Market Analysis provided by IFCMarkets.com

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