Last week was another boring week with very low volume. This definitely was not a good time for most traders. The market was full of both good and bad news, so they kind of canceled out each other.
Hang Seng Index (HSI) dropped after reaching the resistant I mentioned in last two weeks. Dollar also went down after I have posted the divergence post about DXY. Gold broke out as I have predicted too, reaching as high as 1675 which is expected to go higher if the breakout of the resistant line is confirmed.
This week there is not many important economic data released, but we have to be prepared of the possibility that US or Europe will be going to say something about the economy. Read fast and respond fast.
Let's see this week HSI.
Daily chart of HSI:
After reaching the purple resistant line two weeks ago, HSI started to turn its direction and slowly moved to lower levels. Last Friday, it dropped below 20-day Simple Moving Average (SMA).
As US markets wasn't doing too bad last Friday, HSI is expected to open higher. 20-day SMA is anticipated to resist the index at around 20000.
If the index could not break this level, the break down will be confirmed. There is only support until 50-day SMA at around 19570 and ultimate support is at 19200 only daily chart.
Weekly chart of HSI:
Weekly chart gives a clearer view. HSI started to fall after touching the red resistant line. The SMAs are converging and together with the Fibonacci retracement they will be giving support at around 19600.
If the index reaches 19600, it seems like it will be supported and will tend to break out of the red resistant line. Of course this would depend on the volume at that time, but it looks like the trend.
Nevertheless, the trend this week is still bearish. It would have to be revised after reaching 19600.
Hang Seng Index (HSI) dropped after reaching the resistant I mentioned in last two weeks. Dollar also went down after I have posted the divergence post about DXY. Gold broke out as I have predicted too, reaching as high as 1675 which is expected to go higher if the breakout of the resistant line is confirmed.
This week there is not many important economic data released, but we have to be prepared of the possibility that US or Europe will be going to say something about the economy. Read fast and respond fast.
Let's see this week HSI.
Daily chart of HSI:
After reaching the purple resistant line two weeks ago, HSI started to turn its direction and slowly moved to lower levels. Last Friday, it dropped below 20-day Simple Moving Average (SMA).
As US markets wasn't doing too bad last Friday, HSI is expected to open higher. 20-day SMA is anticipated to resist the index at around 20000.
If the index could not break this level, the break down will be confirmed. There is only support until 50-day SMA at around 19570 and ultimate support is at 19200 only daily chart.
Weekly chart of HSI:
Weekly chart gives a clearer view. HSI started to fall after touching the red resistant line. The SMAs are converging and together with the Fibonacci retracement they will be giving support at around 19600.
If the index reaches 19600, it seems like it will be supported and will tend to break out of the red resistant line. Of course this would depend on the volume at that time, but it looks like the trend.
Nevertheless, the trend this week is still bearish. It would have to be revised after reaching 19600.
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