Get back to the stock markets. Last week HSI had jumped up but finally slumped due to debt matters in Europe, Libya protests, China's earthquake, Japan's earthquake and tsunami and so on. Despite of what happened in Japan, DJIA still surged 0.5% last Friday. However, this week I will still hold a bearish view on the index.
Daily chart of HSI:
In mid of last week, Hang Seng Index did try its best to break the red up-trend line. This line, as I mentioned last Monday, provided a very strong resistance force to the index. In fact, HSI could not make its way above this line.
Good enough though, there is a short-term support (in green) keeping HSI above 23,200. However, this line is a down-trend line, which gives support at lower and lower levels.
Besides the short-term green line, the lower red up-trend line also supports the index at around 22,900.
Weekly chart:
On weekly chart, HSI is still under the red up-trend line. This is what makes me have a bearish view on the index.
It has reached the end of wedge. I will expect a hugh increase in volatility this week. Support on weekly chart will be at around 22,400.
Next support will be found at 21,000... this will be a big tumble.
Thanks for the graph and info.
ReplyDeleteCheers