Hang Seng : Wait-and-see attitude prevails
By Anaïs Lozach
The Hong Kong Stock Exchange has failed to maintain the increase over the past month due to concerns over the Chinese economy (falling industrial profits) and the slowdown in global growth. Uncertainty regarding Sino-American trade negotiations has also affected the trend. Investors are waiting for the conclusion of the discussions between the two world powers and are reacting, meanwhile, to the day-to-day indicators. This wait-and-see attitude is reflected in the index's prices, which have been moving up and down for several weeks.
From a technical point of view, the index has, as expected, evolved within a consolidation zone of between 28225 and 29430 points. Prices are positioned between the 20 and 50 day moving averages, validating the profit taking phase. The configuration will remain positive beyond the 28225 point line. A break, at the end, would further weaken the current graphic scheme and pave the way for a downward extension towards 27200 points.