Wednesday, October 27, 2010

What's it up to? (2010-10-27 HSI analysis)



Above chart is the daily chart of Hang Seng Index (HSI). After more-than-1-month surge along the green channel, it has been moving sideways these few days. MACD has been dropping after the bearish cross which is not a good signal, and the index touched the bottom line of the channel today. Upper bollinger band is getting flatter, showing a sideway market.

I would expect slight movements these three days, and the GDP announcement by US on Friday would be a trigger point for larger volatility next week. News traders could probably buy HSI call on Friday as the GDP is expected to have increase in growth.

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