Uncertain (2010-11-01 HSI analysis)

Start of November, good luck this month everyone. Time difference between Hong Kong and London changed from 7 hours to 8 hours yesterday due to the winter time, which means I would have to get up even earlier to keep track of the Hong Kong market.

Anyway, let's predict how HSI would move this week:


Above is the weekly chart of HSI. After touching the 61.8% fibs level three weeks ago, it dropped and could not break it. The index is currently still within the pitchfork, and above the red triangle which it broke before. One thing to be aware of is the MACD and its EMA. They have touching each other, so there will be possibility for a bearish cross unless HSI could surge in this week.

Neither the trendlines nor the levels can tell us about its movements this week, so we'd better do nothing. If it breaks the 61.8% fibs level (23,800), next resistant would be at 26,400. If it plunges instead, there will be support at 21,000 - 22,000 given by the pitchfork and the red trendline.