Finally all my exams (both school and open exams) are over and now I have more time to keep track of the financial markets and do analysis.
Last week there weren't big movements until Friday where US and Europe markets plunged hardly due to the job data. Hang Seng Index (HSI) is expected to follow and plummet as soon as the market opens.
This week there will be a lot of GDPs and unemployment rates coming out. More important ones that have significant effect on Hong Kong market might be Euro-zone GDP on Wednesday and Japan GDP on Thursday.
Let's see this week HSI.
Daily chart of HSI:
The index plunged below the Pitchfork, and was not able to get back within it after trying hard last week. We can treat this as an even more bearish signal.
Below the Pitchfork, still, we could not find a valid support on daily chart. This tells us that the index still has room for plunging.
Other than the above information, it seems like the chart is not telling us anything more.
Weekly chart of HSI:
Weekly chart is more informative in terms of suggesting a good support level. The lower red line is a longer up-trend line which provides strong support at around 17450 (it was 17400 at the beginning of last week).
Also, the Fibonacci level is going to support the index at around 17800. Therefore, we can continue to expect a strong support zone at 17450-17800. We can take LONG positions at this level with quite little risk.
For the upside, there is slight resistant at 19500. But given the investment atmosphere these days, I believe this level can hardly be reached in short time.
Good luck.
Last week there weren't big movements until Friday where US and Europe markets plunged hardly due to the job data. Hang Seng Index (HSI) is expected to follow and plummet as soon as the market opens.
This week there will be a lot of GDPs and unemployment rates coming out. More important ones that have significant effect on Hong Kong market might be Euro-zone GDP on Wednesday and Japan GDP on Thursday.
Let's see this week HSI.
Daily chart of HSI:
The index plunged below the Pitchfork, and was not able to get back within it after trying hard last week. We can treat this as an even more bearish signal.
Below the Pitchfork, still, we could not find a valid support on daily chart. This tells us that the index still has room for plunging.
Other than the above information, it seems like the chart is not telling us anything more.
Weekly chart of HSI:
Weekly chart is more informative in terms of suggesting a good support level. The lower red line is a longer up-trend line which provides strong support at around 17450 (it was 17400 at the beginning of last week).
Also, the Fibonacci level is going to support the index at around 17800. Therefore, we can continue to expect a strong support zone at 17450-17800. We can take LONG positions at this level with quite little risk.
For the upside, there is slight resistant at 19500. But given the investment atmosphere these days, I believe this level can hardly be reached in short time.
Good luck.
The two red lines are going to meet up...what next?
ReplyDeleteHwang, I think it means a big movement, either up or down. As it is on weekly chart, there is still plenty of time for us to further observe which side the index is going to break.
ReplyDeleteJeffrey
Thanks for your comments!
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