hang seng index daily outlook for tues 15 sep potential push up towards range top above 21300 suppor

(Click to enlarge chart)

Key elements

• The Hong Kong 40 Index (proxy for the Hang Seng Index) has managed to stage a bounce from its short-term graphical range support at 21300.
• The 21300 support also confluences with the 50% Fibonacci retracement of its recent up move from 08 September 2015 low @11am to 09 September 2015 high @3pm.
• The hourly (short-term) Stochastic oscillator has exited from its oversold region and still has room for upside potential before reaching its extreme overbought level (as highlighted by the light blue box). This observation suggests that upside momentum remains intact in the short-term.
• The 22400 resistance is the neckline of the impending bullish “Double Bottom” chart configuration (please click on this link for more details as per highlighted in our latest weekly outlook).

Key levels (1 to 3 days)

Pivot (key support): 21300

Resistance: 22400

Next support: 20860 (weekly pivot)

Conclusion

As long as the 21300 daily (short-term) pivotal support holds, the Index is likely to see a push up to target the 22400 range top (neckline resistance of the “Double Bottom” chart configuration).

On the other hand, failure to hold above the 21300 short-term pivotal support may negate the bullish tone to see a slide to test the 20860 weekly pivotal support.

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