Recently I am busy working on my dissertation and therefore I do not have much time to keep track of the stock markets and might update less frequently.
Last week global stock markets plunged, but US markets rose on Friday. Therefore, Asian markets are expected to open high today. This week numbers for CPIs are coming out but they do not have big influences on stock markets. Events to be aware of is when US Fed releases reports, on Tuesday, Wednesday and Thursday. Bernanke might have some speeches that affect the markets greatly.
Let's see how Hang Seng Index (HSI) should be moving this week.
Daily chart of HSI:
The index finally breaks the upward-trending flag, to a lower level. Given the rise in US markets last Friday, HSI should be rising today and is going to test again the lower line.
Resistant is found at around 19450, if the index closes above the line, the breakdown would be fake and it would continue moving within the flag.
However, if breakdown confirms, it seems like there is no strong support until 18000 on daily chart. We need weekly chart to help identify any possible support in between.
Weekly chart of HSI:
On weekly chart, the index is supported by 10-week Simple Moving Average. We would have to see whether the index would breakdown of this support this week.
A shorter-term support is found at around 18400. So if breakdown confirms on daily chart, 18400 will be the next support.
As usual, the red dotted line shows a strong resistant at 20400 and the green dotted line gives strong support at 17800 (which means that 17800-18000 is strong support zone).
So good luck to all of you.
Last week global stock markets plunged, but US markets rose on Friday. Therefore, Asian markets are expected to open high today. This week numbers for CPIs are coming out but they do not have big influences on stock markets. Events to be aware of is when US Fed releases reports, on Tuesday, Wednesday and Thursday. Bernanke might have some speeches that affect the markets greatly.
Let's see how Hang Seng Index (HSI) should be moving this week.
Daily chart of HSI:
The index finally breaks the upward-trending flag, to a lower level. Given the rise in US markets last Friday, HSI should be rising today and is going to test again the lower line.
Resistant is found at around 19450, if the index closes above the line, the breakdown would be fake and it would continue moving within the flag.
However, if breakdown confirms, it seems like there is no strong support until 18000 on daily chart. We need weekly chart to help identify any possible support in between.
Weekly chart of HSI:
On weekly chart, the index is supported by 10-week Simple Moving Average. We would have to see whether the index would breakdown of this support this week.
A shorter-term support is found at around 18400. So if breakdown confirms on daily chart, 18400 will be the next support.
As usual, the red dotted line shows a strong resistant at 20400 and the green dotted line gives strong support at 17800 (which means that 17800-18000 is strong support zone).
So good luck to all of you.
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