Ready for Plunge (2010-08-01 HSI analysis)

Well, it just doesn't look good for HSI. Let's take a look at the Hourly chart.



The 10 SMA has just crossed 20 SMA from above. If the cross confirms which means HSI drops on Monday, checking the past data, it would most probably (there was once that the index didn't drop after the cross) be followed by a plunge in HSI for at least few days.



Back to the daily chart, our expectation on the drop would be somewhere around the edge of triangle, which is at around 20,400. This would be a buy area for a rebound.