HSI Hangseng index could make some new highs. It is trading between the solid red line and the solid light green light. It's a buy for long term hold as long as they respect the parallel channel in monthly chart.
1st weekly target already hit, not very safe to enter now. Now is the time to wait patiently for RSI to retrace to 50 level before deciding on the next step. It is 21bars since the last MACD cross, if the retrace is deep, it might go down to meet the MACD (green circle); which I doubt so. Any thing beyond 23k is already pushing the envelope. For this chart, the...
See chart.
(Written in white)
Normally I wouldn't have a stop in place for a major
index that's down 60%.. SO IF YOU ARE NOT
USING LEVERAGE and can sustain a maximum
likely drawdown of 40% on this position, just hold it.
(e.g. Assuming a portfolio value of 50k
(a portfolio value of this size cannot
afford the futures - you'd need the ETF), invest 5k
and...
Huge Pattern Breakout on Monthly Timeframe. Waiting to Buy Daily Pullback to the Breakout Level. Volatility Compression may lead to Huge Range Expansion ( ie Clean Trend Move ).
With the two day holiday in Hong Kong starting tomorrow the white collar sect of Hong Kong will be joining the demonstrations condemning Xi Jinpings proposal to screen candidates for the 2017 leadership election. I am looking at the index heading back towards the lows of May with the 0.236 fib level likely to act as the next support.
