By Chris Becker
With the UK parliament Brexit vote dominating markets overnight – particularly currencies – sentiment picked up as US markets opened and OPEC made some gestures towards production cuts, helping oil prices as US tech stocks pushed higher. The USD lifted slightly against the majors, with Pound Sterling obviously having the most volatility, while US Treasuries also stabilised.
Looking at Chinese stocks first yesterday, where the Hang Seng Index closed 2% higher to 26830 points, finally able to breach the weekly downtrend channel (black line) on the daily chart and rebuffing the previous clawback to the moving average band. Note how price is clustering well above the high moving average and is building for a more sustained breakout above resistance at 27000 points:
