In the middle again (2011-04-26 HSI analysis)

4-day holiday has ended. Hope you have enjoyed your vacation and taken a good rest. These four days were just too peaceful that nothing breaking happened. That's good anyway.

So as a start of this week, let's focus on the Hong Kong market in general.

Daily chart of Hang Seng Index:


This chart is similar to that last week. After reaching the red down-trend line and 50-day Simple Moving Average, which supported the index, HSI rebounced and closed above 24100.

The only factor remaining that possible affects HSI on the chart appears to be fibonacci retracement. We can see that 38.2% did successfully contribute to support the index too.

The index is currently in the middle of 0% and 23.6%. There is no obvious resistance and support here, so we have to see how it moves.

MACD just touches its EMA from below, having possibility to form bullish cross above zero level. This could be a good sign, but still we have to wait and confirm it.

Weekly chart of HSI:


Weekly chart is clearer this week. Actually it is just similar to that last week as well.

Green line represents long-term up-trend line and red is the short-term down-trend line. Same as last week, HSI is hanging in the middle again. This increases difficulty to judge what would happen this week.

Please be aware as well that the trading range is widening. This means that resistance will be higher and support will be lower.

This week's resistance will be at around 24,550 and support will be at around 23,500. So the volatility could possible surge as well.

So you would know what to do when the index reaches these levels.