Hong Kong 50 Index is still waiting for an upside breakout signal

The Hong Kong 50 CFD remains holding on the upside after November's upward acceleration.

Charts (6)

The Hong Kong 50 CFD remains holding on the upside after November's upward acceleration. Last week, China's industrial production rose 7.0% in November, as expected, while November retail sales grew 5.0%, as expected. In fact, the index is trading within a narrow range since reaching the top of November at 27100.

Technically, the index prices are trading within the flat pattern. A upside breakout could signal an upside signal and rebuild the upward momentum. In addition, the index is still supported by a rising 50-day moving average, while the RSI stays above its neutrality level at 50. Besides, the rising trend line also helps to maintain the bullish technical outlook. Bullish readers could set the support level at 25800, while the resistance levels would be located at 27100 and 28100.

Source: GAIN Capital, TradingView

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