Dow and Nikkei 225 rally, but Hang Seng slips lower again
Falling inflation expectations and Saudi Arabia’s move to cut export prices for oil meant that equities have finally found their footing after a difficult start to the year. However the Hang Seng falls once again.
Dow rallies once more
Monday saw the index rebound from the lows of the session, clawing back losses from the final two sessions of last week.
A push to new record highs may well now develop, and beyond this the 38,000 level comes into view. This cancels out a short-term negative view and revives the uptrend, albeit at a potentially overextended level.
A reversal back below 37,250 would be needed to revive the short-term negative view.
Nikkei 225 testing recent highs
Further gains on Monday helped to lift the index back to the November highs, and now a test of 34,000 seems to beckon.
A move above 34,000 would put the index at its highest levels since 1989, and would mark the end of the extended consolidation period for the index that has been in place since the end of June.
Since last week’s low the price has gained over 3%, and it would need a close back below 33,000 to put the sellers back in charge in the short-term.
Hang Seng back on a downward path
This index has resumed its downward move, after the brief rebound in late December.
Gains faltered at the 50-day simple moving average (SMA), resulting in a textbook reversal that has taken the index back towards the December lows, the lowest level since November 2022. Further declines head towards the November low at 14,640.
A revival above the 50-day SMA and 17,170, the highs of last week, would be needed to suggest a short-term rebound has begun.
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