Stock Market update: Hang Seng, Shanghai Composite, Nikkei 225, S&P ASX 200

 

The Asian market finished Monday’s session in positive territory, which was led by Hang Seng Index up 3.36%, Shanghai Composite Index at 2.21%, ASX 200 at 1.10%, and Nikkei 225 at 0.84%.

Hang Seng Index gapped up during Monday’s opening trades and rose 3% in the first hour of trades. Investors seem to have ignored DonaldTrumps threats last week to change trade policies regarding trade conditions, which provided Hongkong with a trade advantage over China. The Index is still to recover 50% of its losses from last week’s trades. The current price action structure suggested it needs to hold above 23622.60 to continue to its next target at 23914.70. The Index held steady above 23622.60 and closed the trading session at 23718.00 up 3.36%

Critical Support and Resistance:
Support – 23622.60, 23452.68, 23259.21
Resistance – 23914.70, 24148.48, 24310.78

Shanghai Composite Index surged in the opening trades with a price gap and gave the Index an advantage at the beginning of the trading session. The outcome of the PMI data results reported at 50.7 vs. 49.6 forecasts contributed to its performance, which saw the Index broke through 2885.388 resistance level within the first hour of trades. The Index managed to hold above 2905.444 support level and closed the trading session at 2915.431 up 2.21%

Critical support and resistance:
Support – 2905.444, 2885.388, 2845.685
Resistance – 2913.987, 2932.383, 29455.930

Nikkei 225 Index closed Monday’s trades at 22062.39 up 0.84%. The Index crossed 22068.75 resistance line in the first hour of trades and reached highs of 22152.00 before retreating to 22062.39. The market trend is holding up well above the critical support level at 21600.00 and could continue to its next target at 22345.25 if it holds above 22068.75. A major target is estimated at 22790.00

S&P ASX 200 Index closed Monday’s trades with reasonable gains at 5819.20 +63.5 up 1.10%. The Index had a slow start with opening trades below Friday’s close at 5756.00 and slipped below critical support at 5735.30 but regained momentum towards mid-session and pushed on to close at 5819.20. The crucial price level to watch is still at 5868.00, as indicated in my previous update. The Index could continue to the next stage of its recovery if it holds above 5865.00.

The ASX heavyweights led the Australian benchmark, Rio Tinto up 4.10%, BHP up 3.09%, CSL up 3.06%, and Newcrest mining up 2.75%.
The Reserve Bank (RBA) interest rates decision will be announced at 14:30 and is expected to remain at 0.25%

Critical support and resistance:
Support – 5735.00, 5660.00, 5534.00
Resistance – 5865.00, 5950.00

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