euhl

HKG33 Bullish Divergence and Inverted Head Shoulder

Long
FX:HKG33   Hang Seng index of Hong Kong listed shares
Due to the past few weeks being very hard on stock markets because of rising oil prises, it can also be seen that most markets have already (maybe) started with their recovery, these markets include most American Indexes (US500, NASDAQ, and others).

However European and Asian markets has been held back for the past few days and finally they may seem some light.

As seen in the chart HKG33 has formed a very clear head shoulder pattern and has created a hidden bullish divergence on the RSI .

PA has respected the descending channel sofar, however it gives us opportunity to take a small long if not greater long from the areas of 22290 - 22500.

If PA manages to move into the purple zone and keep its head afloat, we might look at the HSIs recovery. Oil prices still way heavily on European Pacific markets.

Any thoughts?
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