The Hang Seng Index has been able to muster a diligent surge of higher momentum and buyers remain active.
The Hang Sang Index technically has proven that an optimistic wave of speculative buyers remain active within the Hong Kong stock market. The Hang Seng has incrementally climbed higher with a rather solid pace since early November. The rise in value on the Hong Kong exchange mirrors other major equity indices, but also perhaps reflects a sense of optimism regarding the change in government that is about to occur in the US executive branch.
President-elect Biden will be taking power of the White House officially tomorrow and investors in Asia may rightfully believe the new US administration will indicate a desire to extend a more welcoming trade relationship. The Hang Seng is within shouting distance of the important psychological level of 30000.00 and it seems reasonable to believe that this mark is a target for speculators.
If the Hang Seng does power through existing resistance within the 298250.00 to 29850.00 levels, it seems reasonable from a technical perspective that the 29900.00 level will be tested rather quickly. Today’s trading on the Hong Kong exchange produced positive traction and early calls from US future markets signal a day for potential upside. Positive movement in the US on Wall Street today combined with the US inauguration of President-elect Biden tomorrow make a speculative buy of the Hang Seng Index look like a worthwhile plan.
Traders need to certainly be careful because there is a danger that profit-taking could develop on the Hang Seng near term. However, the prospect of stronger buying from investment houses and the potential that if the 30000.00 mark is approached it could set off a wave of buying from programmed trading software, may prove alluring for traders who are conservative and wondering if they should participate at these higher values.
The last time the Hang Seng Index sincerely tested its current values was in April of 2019. Optimistic traders who look at long-term technical charts will see the Hang Seng has achieved higher values before. The Hang Seng has the capability short term to go higher based on current global market sentiment and optimism which could be generated as President-elect Joe Biden takes power in the United States tomorrow. Buying the Hang Seng Index and speculating on a higher move near term seems like the logical choice.
Hang Seng Index Short-Term Outlook:
- Current Resistance: 29800.00
- Current Support: 29550.000
- High Target: 29900.000
- Low Target: 29475.000