There weren't much important things happened last week. Japan's tragedy was somehow settled. I guess at most it would be the protest in London which would lead stock market in London drop. HSBC as the largest component in HSI, this index will be more bearish biased this week.
In fact, it is more-or-less following the trend in technical view.
Daily chart of HSI:
After the great slump two weeks ago, HSI was able to recover most of its loss last week. We can see a very bullish consecutive white candles.
MACD and its EMA appeared to have a bullish cross. This gives investors confidence to invest in the market. That's why we could see the volume last Friday jumped suddenly.
I have identified the red long-term down-trend line as the resistance. This level will be at around 23,600 at which HSI has very high chance to turn its direction.
The support will be at around 22,100 which is the previous low. This level surely has strong support to the index.
Weekly Chart of HSI:
Weekly chart gives clear picture of how HSI will move.
We can see that the index is currently hanging in the middle of the channel. The channel range is quite wide, so the index could hardly find resistance nor support until around 600 points rise or drop.
The purple channel predicts a resistance at around 23,750, and the support would be at around 21,600.
Quite different from daily chart, we could see there is a bearish Moving Average cross on weekly chart. MACD is still heading downwards, showing no bullish signal.
Combining both charts, I would expect short-term rise of HSI, till around 23600-23750. Then it would face huge resistance force and we have to see whether it could go any further upwards.
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