Be Careful of 21,300 (2010-02-17 HSI analysis)

Following the financial problem in Greece, Goldman Sachs was "suspected" that they did not disclose any information about selling currency swaps to Greece in 2002. Though it was difficult to prove, Goldman could be facing legal liability for this as they might cause unfairness to the public about the finance situation in Greece. So would Greece be the only place for such "incidents"? or eventually would other countries such as Spain or Portugal be found to have undisclosed swaps too? Let's see in the future.

After some good news in the globe, such as more-than-doubles gains by Barclays and more-than-estimated growth in New York Manufacturing, the stock markets in the world rallied. HSI rised 1.77% before the lunch-break. So I did an analysis on short-term HSI. What I would like to know is how far the market would go up to as I strongly believe that the whole market is actually in the trend of downwards.



HSI broke through the middle trendline already for the second day, and as it is likely to remain in this area in the next few days, I predict HSI would go further higher to the upper trendline. It would be at around 21,318.38 before turning downwards. So, this would be a chance for a small gain but when it reaches around 21300, everyone should be careful about the reverse.