Hang Seng skyrockets on news and rumours of stimulusProperty and technology companies showed some of the strongest reactions to this week’s news, up on average 7% and 7.3% respectively. Forecasts for most major Chinese tech companies are broadly optimistic and analysts had recently noted the disconnect between these and the actual prices of various shares.
As for USDCNH, there’s clear saturation here from Bollinger Bands and the slow stochastic and the price has reached a new extreme, so immediate continuation is questionable. 20,000 seems to have been broken clearly for now, but the 61.8% weekly Fibonacci retracement just below this might make it an important short-term support if there’s a retracement.
22,800 – January 2023’s high – seems like an extremely aggressive target. It’d be unlikely to see the price continue its recent momentum to reach there immediately but it’s possible over the next few weeks or months depending on earnings and, crucially, confirmed details of further stimulus.
This is my personal opinion which does not represent the opinion of Exness. This is not a recommendation to trade.
