Daily HSI:
From the daily chart, we could see that after reaching the upper line of pitch-fork, the index reversed its direction and plunged. Given by the fork and the previous peak, there is a support zone ranged from 23880 to 24170. Also, the index has been following the green uptrend line, and it would give supportive power to HSI at this zone as well.
However, MACD and EMA gave a bearish cross signal three days ago. Volume shrank too. These are no-good signals, which probably lead the index to a lower level, breaking the support zone.
Weekly HSI:
In early November, HSI tried to break the 100%-fibonacci level given by the projection using the pennant. However, the index could not make it and it dropped back below the 100%-level last week.
Though MACD and EMA did not given any signal, we could expect the price to drop back to 61.8%-level, which is around 22,940. Whether it is only correction or the bullish trend has reversed would need further evidence.
Combining both charts gives bad message about the stock market next week. It would first drop to around 24,000, then if there is no further support such as policies or data, the index could possibly drop to 23,000.
Thanks for share.
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