Charts tell the same thing (2011-07-04 HSI analysis)

Last week the world's stock markets were doing great. Most major indexes rose, including Hang Seng Index. This was mainly due to optimistic views on Greece debt problem and some positive economic figures.

Let's see how HSI will move this week.

Daily chart of HSI:


The trend lines are more or less the same as what I drew last week. I could not find better lines which can indicate further movements.

As we can see, HSI is currently in between the support and resistance (in green and red). After forming a bullish cross, MACD and its EMA are both heading upwards, we can expect a positive momentum which leads the index to higher levels.

23,000 is obviously a strong resistance to the index, the short-term and long-term down-trend lines meet there.

For the downside, 21,400 is the support level given by the green line.

Weekly chart of HSI:


The weekly chart looks very similar to the daily chart. Apart from the three lines I drew on daily chart, I added a pitchfork and two not-too-relevant purple up-trend lines too.

The difference is that the pitchfork suggests a resistance slightly higher than 23,000, at around 23,200. So if the index surges, we might see it going above 23,000.

Downside is still 21,400. The two charts tell the same story.