HSI is approaching its support at 27240.6 (100% Fibonacci extension , 61.8% Fibonacci retracement , horizontal pullback support) where it could potentially bounce to its resistance at 30197.0(61.8% Fibonacci retracement , horizontal swing high resistance).
Stochastic (89, 5, 3) is approaching its support where a corresponding bounce could occur.
Hang Seng Futures HSI1!
Next Long Set-Up
This index made a neat exit of the upper parallel - followed by a pip perfect retest of the same line before reversing higher again to test the first line of resistance at 26764, failing just below here after an intraday high at 26694 on futures.
The 26770 level is looking increasingly significant. A break above here...
Indices globally have been in a downturn as the trade tensions between Trump and China heated up however should we expect some short term relief?
The market works in trend and tends to bounce between support and resistance zones. The HK50 (Hang Seng) has reacted from the key weekly support of 25300.00. Looking left you can see how this level has been used...
Hang seng has been sold in line with Chinese equity markets and global equities markets due to trade tensions with US. As these start to subside, and market awakens to the fact that both countries look for win-win agreement equity markets should rally in the near term. Larger moves can be made if key technical levels are broken as highlighted in the chart.
07 Sept. 2016
Hang Senf Index - 4 Hour Chart
Index is now reach a resist level, but buying is strong, expect index to continues the up trend after a correction to the support levels.
The STRONG Resist Zone is where I expect a nice sell back down to the support zone below in this chart, once index manage to climb and reach it, may be in mid. Oct. so watch out for...