hang seng index daily outlook tues 22 sep a potential retest on the 22400 neckline resistance 137049

(Click to enlarge chart) Key elements The Hong Kong 40 Index (proxy for the Hang Seng Index) is still trapped within an impending bullish “Double […]


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By :  ,  Financial Analyst

Hong Kong (1 hour)_ 22 Sep 2015(Click to enlarge chart)

Key elements

  • The Hong Kong 40 Index (proxy for the Hang Seng Index) is still trapped within an impending bullish “Double Bottom” configuration with its key neckline resistance at 22400 (please click on this link for more details as per highlighted in our latest weekly outlook).
  • The hourly (RSI) oscillator has just broken above its former trendline resistance (in dotted green) and still has room for further upside potential before reaching its overbought region. This suggests a built-up in upside momentum for the Index.

Key levels (1 to 3 days)

Pivot (key support): 21650

Resistance: 22400

Next support: 20860 (weekly pivot)

Conclusion

We have placed a tight short-term daily pivotal support at 21650 for a potential push up to target the 22400 neckline resistance of the “Double Bottom” configuration.

However, failure to hold above the 21650 daily pivotal support is likely to damage the short-term bullish tone for a slide to test the 20860 weekly pivotal support which is also the trendline support linking lows of 24 August 2015 @9pm and 07 September 2015 @5pm.

Disclaimer

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