HSCEI DOWNTREND EXTENSIFIESHang Seng China Enterprises Index was already trading on a downtrend due to the real estate problems and COVID lockdowns that were plaguing the country, but the reelection of President Xi and the concerns that more emphasis will be put on political ideology rather than economic growth led to investors selling off their assets, not willing to deal with the uncertainty.
The HSCEI October futures broke the support line of the channel they were trading in and gained even more steam for their downtrend. MACD indicator is confirming the downtrend, while RSI is deep in the oversold area with no prospects to move out of it soon.
If the current downtrend continues, the instrument might try to test levels of around 4300. In the opposite scenario, the price might return to its previous local resistance at 5700.
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