Thanks to Spain bailout, the world global markets surged greatly at the end of last week, and this trend would probably continue at least at the beginning of this week. Hang Seng Index (HSI) basically moved flat last week, but given the big surge in US last Friday, HSI would follow the surge today first.
Commodities prices slumped last week given the strengthened US Dollar. This week probably it would gain due to weakened US Dollar.
This week there is not much important economic news which can affect stock markets. There are CPIs being released but they have effect on FX market more than on equity markets.
Daily chart of HSI:
On daily chart, the index finally got back into the Pitchfork. Given that today the index would rise, we can confirm that it has safely maintained above the lower line.
This means that the index would have a short-term rise till the middle line of the Pitchfork. The resistant level is at around 19200. This would be a strong resistant given not only by the Pitchfork but also the red down-trend line.
After reaching 19200, the index should probably fall again, unless there is another big good news supporting the world stock markets. But it seems like one of the biggest good news has been released last week and that there could not be so many critical good news.
Weekly chart of HSI:
On weekly chart, there isn't much to get. The index did not reach the green up-trend strong support line, and it is now in the middle of the flag.
The only thing we know now is that the trading range is narrowing. There would be someday that it will break out and move in one direction. We have to keep track of this in order to profit from this known fact.
Also, bear in mind that strong support is at 17400-17800 (rising), and resistant is at around 20600 (dropping). These two levels have to be updated every week.
Good luck to all of you.
Commodities prices slumped last week given the strengthened US Dollar. This week probably it would gain due to weakened US Dollar.
This week there is not much important economic news which can affect stock markets. There are CPIs being released but they have effect on FX market more than on equity markets.
Daily chart of HSI:
On daily chart, the index finally got back into the Pitchfork. Given that today the index would rise, we can confirm that it has safely maintained above the lower line.
This means that the index would have a short-term rise till the middle line of the Pitchfork. The resistant level is at around 19200. This would be a strong resistant given not only by the Pitchfork but also the red down-trend line.
After reaching 19200, the index should probably fall again, unless there is another big good news supporting the world stock markets. But it seems like one of the biggest good news has been released last week and that there could not be so many critical good news.
Weekly chart of HSI:
On weekly chart, there isn't much to get. The index did not reach the green up-trend strong support line, and it is now in the middle of the flag.
The only thing we know now is that the trading range is narrowing. There would be someday that it will break out and move in one direction. We have to keep track of this in order to profit from this known fact.
Also, bear in mind that strong support is at 17400-17800 (rising), and resistant is at around 20600 (dropping). These two levels have to be updated every week.
Good luck to all of you.
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