Let's do some update on Hang Seng Index. As we can see from the daily chart above, 61.8% fibs level broke last week and next resistance level is at 26,400. Whether it would immediately reach there or not can be predicted by the other indicators.
MACD is moving towards its last high and would face a big resistant at that level. This certainly curbs the power of the bull wave of the index. Due to the sudden boost these few days, HSI broke the Bollinger Upper Band and is currently quite far away from the band.
On last Friday, there was a sell-off in the market, but the index was then pushed back up and closed near the open. This was a typical "hanging man" pattern, which signals a lower momentum of the bull. It is usually accompanied by plunges afterwards, so we can wait 2-3 days for confirmation.
Nevertheless, the bull is not that strong currently, so it is not a good time to buy any stocks right now. There should be corrections these few days.
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