So news from Europe basically dominates everything in the market now, and I still don't foresee an end on this in near future. Hang Seng Index will continue fluctuating because of the changing news.
Daily chart of HSI:
Daily chart doesn't tell much. Green line is the short-term upwards trending line currently providing support to the index.
As we can see, the next support level will be at around 19,500, and the value will be increasing in a pretty high pace because of the steep slope.
Indeed, 50% retracement level appeared to be a valid resistant to HSI. The index stopped rising at somewhere around this level and dropped. We can still expect it to resist this week, so resistant is at around 20,300.
As usual, the red line is the strong resistant line. This line holds for more than 6 months, and HSI could not break it easily. Therefore, the ultimate medium-term strong resistant is at 20,800.
Weekly chart of HSI:
On weekly chart, we can see that 20-week Simple Moving Average acts as resistant the the index, stopping HSI from surging further.
I drew another fibonacci retracement on this chart. The index is above 38.2% level now, which is around 19,500. This should be a valid support.
Moreover, the median line of the purple Pitchfork is also supporting HSI. So combining with daily chart, 19300-19500 is a quite strong support zone.
For the upside, 20-week SMA continues to be resistant, which is around 20,000. So short-term resistant is around 20000-20300, where the later level is given on daily chart.
20,8oo is ultimate resistant, this level is also suggested by the upper line of pitchfork on weekly chart. Breakout of this level would mean a further surge to more than 21,000-21,500.
All in all, there are quite strong resistances and supports to Hang Seng Index. I think in short-term it will be moving in a range, rather than breaking either side.
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