Investing

The Hang Seng Index Should Have Global Investors On High Alert

China’s rise to a global economic powerhouse has come in fits and starts. And the last 5 years would be categorized as fits.

This can also be seen on Hong Kong’s stock market index. Should this index decline much further, global markets may throw a fit!

Today’s chart takes a long-term “monthly” view of the Hang Seng. As you can see, the index has been chopping its way higher inside a 30-year price channel marked by each (1).

That said, Chinese stocks have really struggled in the last 4 to 5 years. The recent decline has the Hang Sent testing its COVID 2020 lows as well as its long-term price channel support at (2)!

It should also be noted that this is occurring amidst a major divergence with other key global stock market indices (that have made new highs this year while the Hang Seng heads lower).

Global stock markets may want to pay close attention to what happens at (2). Stay tuned…

Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.


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