Uncertain Week (2011-02-28 HSI analysis)

This week would be somehow uncertain. Technical analysis on both daily and weekly chart doesn't give much hints to us. Let's see what I got this week.

Daily chart:


Hang Seng Index managed to get back above the red long-term up-trend line at the end of last week. However, it just dropped back below it. We could treat the breakout as a false one.

After almost touching the few-days low, HSI surged which gave a long white candle last Friday. It was stopped by the Moving Averages.

Good thing is MACD has turned it head upwards, leading to potental bullish cross. But we have to wait till it's confirmed.

We could expect small resistance at around 23,300 give by those moving averages, and strong one given by the red uptrend line, which is at around 23,600.

The downside will be at around 22,400. Breakdown of this level will lead HSI to the next support at around 21,600.

Weekly chart:


HSI fell below the red up-trend line for a consecutive of 3 candles. This could somehow be a confirmed breakdown. If you are more conservative, we can observe it for one more week.

We can see that the index was twice supported by the 50-day Simple Moving Average in past three weeks. Could it keep on be a strong support in this coming week? I guess not.

MACD is moving downwards and has no evidence of turning the way round.

I would have a bearish bias on the market in this coming week. Resistant should be at around 23,600.

Good luck.