This week's focus would be on Thursday, depending on how Bernanke comments on the economy. Also there are several unemployment rates to be released this week.
Daily chart of HSI:
After boosting last week, the index reached 50% retracement at around 20,300, and obviously faced huge selling pressure and closed lower, just above 20,000.
It seems like this level has a certain power now, and the index would need some time to break out. Therefore, the index should undergo little correction and drop a bit.
Support is of course 38.2% at around 19,300.
However, if HSI breaks out, the next resistant will be at around 20,600 given by the purple Pitchfork on the graph.
A further resistant is at around 21,400. This is an extremely strong trend-line because the index has been moving below it for a pretty long time.
One thing worth mentioning is that the volume rose last week. This tells us that the surge was not likely to be a false one. Generally we can have better view on the index.
Weekly chart of HSI:
The orange Pitchfork is the usual one used before. We can see that the index just broke out the median line of the Pitchfork. This shows that we could not under-estimate the power of the rise.
Fibonacci retracement is the same as that on daily chart, giving the same support and resistant levels.
Another thing is that MACD and its EMA are touching each other. This is a possibility that a bullish trend will be suggested by the cross-over. But of course be aware of any false signal.
In general, for this week, I carry a more bearish view because of the very quick rise last week. Resistant levels are pretty strong now. So I think it would be trading within 19300 - 20300.
Good luck
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