Rather than looking at Hong Kong market itself, let's see how the China market is going.
Daily chart of SSEC:
Since Jan 2011, it has been rising along the red up-trend line. The index tried two times to break the level of around 3,000, but obviously it failed.
Currently, it reaches this resistance again. Its time for SSEC to have its third trial.
Looking at the chart soley, I am not too optimistic with it. Firstly, it is clear that this level has extremely strong resistance. Strong buying power would be needed for a breakout.
Secondly, MACD and its EMA are having whipsaw. Also, they are at almost the highest level in the past few months, suggesting that there is not much bullish momentum for SSEC.
Therefore, I expect it to drop a bit. The red line could still act well to support SSEC at around 2960.
3000 remains a very strong resistance. It might take some time to break it, when the red trend line finally meets 3000 level.
If the index breaks upwards, 3122 is the next resistance analyzed using fibonacci projection.
Good luck everyone
No comments:
Post a Comment