After several weeks of selling, U.S. and Chinese markets are both signaling a potential reversal in the short term. A relief rally seems logical at this point.
Index has reached the 127 fib expansion (Somewhat schewed Butterfly) but is currently
pushing below the Monthly S3 towards reaction low 19453.
The white lines is made up of a Weekly ABCD pattern which terminates right at a long term
Trendline around 15000 and close to Yearly S2.
Red dottet lines are reaction lows on the way.
The 161 extended Butterfly stands in...
Analysis of the Hang Seng to get an idea of global markets. The green arrow shows the top...the same date that the US markets started the crash....Oct 2007. The only difference between this market and the US is, the US market is forming a Expanded Flat (huge) where the b wave rises above the top...wave 5.
The most important part to this entire chart is the red...
Everyone's been saying that the SPX is following oil, or the SPX is following the HSI, but in reality the global economy is getting worse and they're all just going down.
Asian Indices
Nikkei
Nikkei hits three week low on account of global equity sell off and weaker oil prices. It has made a low of 192333 and is currently trading around 19300. On the lower side the index major support is around 19200 and any break below targets 19020/18630 level.
The index is facing minor resistance around 19550 and break above will take the...
A potential level to watch should price decide to fall lower.
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23750 is the level to be watch closely. I believe the HSI could moving forward to 23000 and 22500 as the level has been broken.
Good luck and happy trading :)
HSI has been trading in range but still an overall bull the past few years.
HSI is likely to continue to rise but in ranges. Those who understand China and Hong Kong will know there're a number of very compelling bull and bear factors on the horizon.
HSI P/E at historic low of ~10x only -- historically always a long-term win when entered at this valuation
Best...
The Hang Seng Index (HSI) Daily Diagram Technical Analysis Training shows the following:
The HSI index has declined more and now is under the KUMO and EMA200 too. MACD is bearish and RSI is entering oversold levels.
So the first think in mind is that HSI will test the 22120 support.
There is no special candlestick pattern. The index is under the Tenkan Sen and...
There is always a coincidence when a big event cause a market massive move in up or downside
When Hang Seng Index broke the 25000 market with big green marubozu bar...the student knows that only a massive Protest at the CBD would be able to send the index tumbling..
Oh is it? Ain't the double bearish divergence give stern warning in advance
The index gave away 10%...
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.
In the past 3 years, Improving US economics and Abe economic effects boost up US and Euro stock market. Euro stock cheers for the German economy in the 2013. Who is/are missing main charaters? China and HK Stock market is unexpectly quiet. However, recently optimistic data from China seems will trigger buyers and boost up the stock market.
After the big pop in asset-prices in 2007, the Hang Seng Index seems to having broke out of its years long consolidation pattern (ABC-Structure) this month, and now is to continue its decades-long bull market. Very strong fundamentals such as a low P/E-Ratio and a good GDP-Growth support the trend. China has a very good chance to lead the emerging markets performance-wise.
Large bullish candlestick breaking out of moving averages and resistance levels. Might have a brief pull-back as seems common enough with these signals.
If the short history here is any clue, we have technicals very indicative of future price movements; between no BS support and resistance and clear 1-2-day candlestick signals, the HSI seems to be an easy read.
