This week there are not many influential economic data coming out. The meeting between Angela Merkel and Sarkozy today should be going to affect the stock markets greatly. It is publicly expected that they would come up with some positive measures, or at least promises.
Let's see this week's HSI.
Daily chart of HSI:
I could say it is kind of messy on daily chart. The index turned out not to breaking out or down the flag, and now it is bounded somehow by both lines.
Last week it tried to break the red up-trend line, but at the end it closed below this line. It seems like it is still being strongly resisted.
On the other hand, HSI was kind of supported by the green down-trend line and also the three simple moving averages. Besides trying to find another indicator, I drew a Pitchfork. This will be giving us hints about how HSI will move if the index is trying to go up.
I would conclude that the index is within an uncertainty zone right now. Upper and lower bounds are narrowing, and there is no large force bringing it to surge or slump.
Short-term risk to trade is pretty high as we can hardly predict its movement.
Weekly chart of HSI:
Hang Seng Index tried to break out the median line of Pitchfork last week, but obviously it failed.
It remains at the narrowing range from 17800-18500. This bound is still expected to work and the index might still be within this range this week.
We would have to further observe when it is going to break out or down for possible trend reversal or trend continuation.
Therefore, it might be a good choice not to participate this week to further confirm the trend.
No comments:
Post a Comment