China Market Drops: Analysis For Hang Seng, Nikkei 225, ASX, NASDAQ

Hang Seng

Hang Seng pulled back as traders evaluated the recent stimulus measures and took profits after the strong rally. Traders worry that the recent stimulus package may not be sufficient to provide significant support to Chinese economy.

Hang Seng settled below the previous support at 21,400 – 21,500 and continues to move lower. RSI is in the moderate territory, and there is plenty of room to gain momentum in the near term. A move below the 20,500 level will push Hang Seng towards the nearest support at 19,700 – 19,800.

Nikkei 225

Nikkei 225 gained ground amid rising demand for financial stocks. Traders reacted to the Reuters Tankan Index report, which indicated that Tankan Index improved from 4 in September to 7 in October, compared to analyst consensus of 6.

Nikkei 225 is trying to settle above the nearest resistance level at 39,400 – 39,500. In case this attempt is successful, Nikkei 225 will head towards the next resistance at 40,400 – 40,500.

ASX

ASX was swinging between gains and losses as traders focused on the pullback in precious metals markets and reacted to the rate cut from New Zealand’s central bank. RBNZ cut the interest rate from 5.25% to 4.75%, in line with analyst estimates.

If ASX manages to settle above the 8200 level, it will move towards the nearest resistance at 8260 – 8285. On the support side, a move below 8150 will push ASX towards the support level at 8090 – 8110.

NASDAQ

NASDAQ continues its attempts to settle above the resistance at 20,000 – 20,100 as traders focus on Fed policy outlook. Today, traders will have a chance to take a look at FOMC Minutes, which may have a significant impact on market dynamics.

A successful test of the resistance at 20,000 – 20,100 will push NASDAQ towards the next resistance level at 20,700 – 20,800.

For a look at all of today’s economic events, check out our economic calendar.