hong kong 40 daily outlook for 21 jan pull back before potential short term upside movement resumes

  Key elements The 13-period Moving Average is acting as a support at 23770. The gap resistance is at 24300. The RSI has just broken […]


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By :  ,  Financial Analyst

Hang Seng Index (1 hour)-daily forecast 21 Jan 2015

 

Key elements

  • The 13-period Moving Average is acting as a support at 23770.
  • The gap resistance is at 24300.
  • The RSI has just broken above its former trendline resistance and 50% level.

Key levels

Intermediate support: 23870

Pivot (key support): 23770

Resistance: 24300 & 24430

Next support: 23600

Conclusion

The Hong Kong 40 Index (proxy for the Hang Seng Index) may see a pull-back first towards 23870 with a maximum limit set at the 23770 daily pivotal support before resuming its potential upside movement towards 24300.

On the other hand, a break above 23770 may negate the bullish tone to see a decline to retest the 19 January 2015 swing low at 23600.

Disclaimer

The information contained in this material is intended for general circulation only.  It should not be construed as a recommendation, or an offer (or solicitation of an offer) to buy or sell any financial products. The information provided does not take into account your specific investment objectives, financial situation or particular needs.  Before you act on any recommendation that may be contained in this report, independent advice ought to be sought from a financial adviser regarding the suitability of the investment product, taking into account your specific investment objectives, financial situation or particular needs.  All queries regarding the contents of this material are to be directed to City Index Asia Pte Ltd.

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