​​​​Dow and Nikkei 225 Hold Steady, while Hang Seng Stages a Small Rebound

Article by IG Chief Market Analyst Chris Beauchamp

Dow Jones, Nikkei 225, Hang Seng Analysis and Charts

​​​Dow continues to track lower

​A gentle pullback has continued here, with the price resuming a short-term topping pattern.​A deeper retracement below 37,000 could bring the 50-day SMA into view, which would take the price to its lowest level since early December.

​Even this, or a deeper drop would leave the uptrend intact. Short-term support may be found at the early 2022 highs at 36,954.

Dow Jones Daily Chart

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​Nikkei 225 stabilizes after Wednesday’s reversal

​The index’s remarkable run higher stopped yesterday as the price dropped back below 36,000.The price has registered some small gains overnight and remains close to this week’s multi-decade high. A close below 35,000 might signal that a deeper retracement has begun.

​In the event of a much deeper pullback, the summer highs at 34,000 come into view. A close back above 36,000 puts the buyers in charge again in the short-term.

Nikkei 225 Daily Chart

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​Hang Seng edges off a 14-month low

​This week saw the index plummet to its lowest level since November 2022, with disappointing Chinese GDP data adding to the tough outlook for that economy.​After the steep losses earlier in the week a bounce has taken place overnight, though it remains to be seen if it can muster up additional strength towards 16,000 and the previous low.

​Further declines target the October 2022 low at 14,830.

Hang Seng Daily Chart