Last week the global stock market went quite differently. US and Europe markets basically only surged in the beginning and started plunging, mostly closed low (on weekly charts) on Friday due to the plummet that day.
Hang Seng Index (HSI) in general recorded a positive change last week, but we have to expect it to react to the slump in overseas markets last Friday. So today it is more likely to open low.
Gold dropped hardly as well, and it looks like that it is not following what I wrote on Thursday which I thought the support was strong. It is now within the down-trend channel and that it is still under bearish trend now.
This week there is not much important economic data released, so the movement should be more stable unless there are breaking news. Let's see what the charts tell.
Daily chart of HSI:
On this chart clearly we can see that the index broke out of the upper down-trend line, shown in green. With more than 3 days staying above the line, the breakout is more or less confirmed.
Given by both the lower up-trend green line and the Fibonacci level, we can find strong support at 21,000. This is a critical level for today which determines how HSI is going to move this week.
If it closes below 21,000, the extended down-trend green line would provide a further support to the index which is at around 20,500. This becomes the range of the index, and this range is widening.
If it continues to move upwards, it will head to 21,600 and most likely it can even break it and attempt to reach 22,100.
Weekly chart of HSI:
On weekly chart, we can see that the index breaks out of the down-trend channel, shown in green. The breakout has to be confirmed by further observation.
If this week it closes below 20,800, that means it drops back within the channel and the breakout is false. It would be continuing its bearish trend.
On the other hand, the Fibonacci level at 21,600 remains a resistant to the index and it will another time that HSI attempts to break it. Given such many trials, it is quite likely that HSI could make it this time.
So this week is pretty hard to predict, let's see and watch and react to the movements.
Hang Seng Index (HSI) in general recorded a positive change last week, but we have to expect it to react to the slump in overseas markets last Friday. So today it is more likely to open low.
Gold dropped hardly as well, and it looks like that it is not following what I wrote on Thursday which I thought the support was strong. It is now within the down-trend channel and that it is still under bearish trend now.
This week there is not much important economic data released, so the movement should be more stable unless there are breaking news. Let's see what the charts tell.
Daily chart of HSI:
On this chart clearly we can see that the index broke out of the upper down-trend line, shown in green. With more than 3 days staying above the line, the breakout is more or less confirmed.
Given by both the lower up-trend green line and the Fibonacci level, we can find strong support at 21,000. This is a critical level for today which determines how HSI is going to move this week.
If it closes below 21,000, the extended down-trend green line would provide a further support to the index which is at around 20,500. This becomes the range of the index, and this range is widening.
If it continues to move upwards, it will head to 21,600 and most likely it can even break it and attempt to reach 22,100.
Weekly chart of HSI:
On weekly chart, we can see that the index breaks out of the down-trend channel, shown in green. The breakout has to be confirmed by further observation.
If this week it closes below 20,800, that means it drops back within the channel and the breakout is false. It would be continuing its bearish trend.
On the other hand, the Fibonacci level at 21,600 remains a resistant to the index and it will another time that HSI attempts to break it. Given such many trials, it is quite likely that HSI could make it this time.
So this week is pretty hard to predict, let's see and watch and react to the movements.
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