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InvestingScope
Nov 8, 2019 6:53 PM

Hang Seng: Symmetrical patterns show an extended uptrend to at l Long

Hang Seng IndexTVC

Description

The index has broken above the multi month descending channel that started on April's peak with a clear cross over the Lower High trend line (dashed line) on very healthy bullish 1D price action (RSI = 66.138, MACD = 47.598, Highs/Lows = 433.2348).

Since both 1W and 1M turned neutral (RSI = 54.126 and 51.251 respectively) we are looking at previous candle patterns for clues. So far we have spotted striking similarities with the October 2018 - January 2019 price action. Similar lows, High and rejection around 27,300 and then a continuous bullish sequence.

Based on that symmetry we have set the following targets: 29,000, 29,500 and 30,200, which should be used in accordance to each trader's risk approach. A Golden Cross on 1D (as it happened in March) will further validate this outlook.

In September we've made a similar analysis with targets based on Fibonacci retracements and is already near the first target:








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