Another sideways week? (2012-02-13 HSI analysis)

Last week global stock markets were trading sideways, with one day up and one day down. "Greek talk" had been the reason for any movement for few days.

Hang Seng Index was doing the same as well, tested 21,000, dropped, and tested 21,000 again. It closed at 20,783 last week.

This week there will be several important economic data released, including US retail sales, some GDP in Europe and Fed's minutes, though they might not bring too much influence to the stock markets. Greece is still the main issue.

Daily chart of HSI:















On the chart, we can see that the index has been testing 21,000 several times last week. This resistant is given by the gap in early August 2011, and obviously this gap has still not been filled yet.

Good thing is there is a slight support by the 10-day Simple Moving Average. However, it is not expected to be strong enough to support the index for a long time.

Upside levels, given by the fibonacci projection, are 21,000, 21,600 and 22,200. This projection is estimated by the orange flag.

For supports, the next level should be at around 20,350, which is only a small range from the current level. After that, it would be the green line, which is at 19,700.

Weekly chart of HSI:















On weekly chart we can see that the index has moved out of the Pitchfork range, so it is at a pretty "unlimited" position.

However, it looks like that going downward is more likely. If HSI really does so, the next support on weekly chart will be at 20,000. This is a quite strong level that it should be enough to support the index at this stage.

Resistant is still at 21,600, which is the same as that suggested on daily chart. This will be the resistant if HSI breaks out 21,000.

So basically this week will be another sideways markets week, until we see any major break outs.