Not much hints (2011-08-29 HSI analysis)

Last week there wasn't much happened. Bernanke's speech did cause US stock markets rallying last Friday, but the effect should not last long. Gold surged greatly after big drop in middle of last week.

Daily chart of HSI:















Same as last week, the index was in the middle of the Pitchfork, not reaching either side.

18,900 is the previous low, and the support given by the lower line of Pitchfork is around 18,500. This zone is the support zone for the index.

Given Bernanke's outlook of economic situation, stock markets this week is more likely to rise. If so, it is possible that HSI will form a little double bottom.

To be more specific, if the index surges through 20,500, it would definitely get back to the red down-trend resistant at around 21,000 and then the upper line of Pitchfork, which is at around 22,100.

Weekly chart of HSI:















Weekly chart indeed gives the same information to us. Everything is just the same.

One more piece of information, if HSI breaks down 18,800, it would plunge up to around 15,800. This could be one of the easiest ways to make money.

So this week we'll have to see how VIX goes too. I'll pos tthat