hang seng index retreated from weeklymedium term resistance at 21000 1803852016
(Click to enlarge charts) What happened earlier/yesterday The Hong Kong 50 Index (proxy for the Hang Seng Index futures) has did another “fake rebound” above […]
(Click to enlarge charts) What happened earlier/yesterday The Hong Kong 50 Index (proxy for the Hang Seng Index futures) has did another “fake rebound” above […]
The Hong Kong 50 Index (proxy for the Hang Seng Index futures) has did another “fake rebound” above 20740 intermediate resistance and staged to a push towards the 21000 weekly medium-term pivotal resistance (click here for a recap on our weekly outlook/strategy), where it printed a high of 20994 in the U.S. session before it staged a retreat at the closing session at 11.45 pm, Singapore time.
Pivot (key resistance): 21000 (weekly/medium-term)
Supports: 20670 & 20390/270
Next resistance: 22300
Technical elements are still bearish despite yesterday’s rally and most importantly, the Index is still below the weekly/medium-term pivotal resistance of 21000. Short-term price action is now oriented to the downside for a further potential slide to test 20670 before targeting the next support at 20390/270.
On the other hand, a daily close above the 21000 weekly/medium-term pivotal resistance is likely to invalidate our medium-term bearish view to see an extension of the countertrend rally to propel the Index higher towards the next resistance at 22300.
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