Not the textbook example of a head and shoulders pattern on the Hang Seng, but nonetheless showing us a transition from higher lows (uptrend) to now lower highs (downtrend).
I wouldn't really want to trade equities given world equity markets are remaining poised for the Federal Reserve rate decision...but I do like the break, and if we can confirm the retest here...
HSI is currently in an uptrend, the critical 29000 level would be reached soon and then push up further.
Upside Target: 29250, 29400
Support: 28700, 28850
To fill the gap above 29400, it would require really good news about trade deal between US and China.
With Xi and Trump meeting this weekend, I'm expecting good news from them as the market close with a very bullish pattern. Going long here should be very rewarding as there is potential for upside than downside. 27910 will be our SL.
HSI is bouncing off its 1st support(100% Fibonacci extension , 61.8% Fibonacci retracement , horizontal pullback support) where it could potentially bounce to its resistance at (61.8% Fibonacci retracement , horizontal swing high resistance).
ichimoku cloud is also showing support where a corresponding bounce could occur.
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.
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.
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.
Buy above. Stop loss at. Take profit at.
Reason for the trading strategy (technically):
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)...
Ended last week with a daily that bearishly engulfed the prior 3 days and it's rally back towards its all time high stopped right around the .618. I'd have to call that a dead cat. Also a hanging man at the top where the rally ended along with an island. Currently losing this fib level as we speak. looks bad.
HSI is approaching its support at 28788.6 (61.8% Fibonacci extension , 61.8% Fibonacci retracement , horizontal overlap support) where it could potentially bounce to its resistance at 29422.9 (50% Fibonacci retracement , horizontal pullback resistance).
Stochastic (89, 5, 3) is approaching its support where a corresponding bounce could occur.
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HSI has been labeled within a Sub-Millennium degree wave 4 (blue), which has been unfolding ever since the 2007-2008 Recession.
Structure - Expanding Flat Formation
Oct 2007 peaks and down until Oct 2008 bottoms - Grand Super-Cycle wave a (red)
Oct 2008...
Hang Seng index is approaching its resistance at 29416.2 (61.8% Fibonacci extension, 38.2% Fibonacci retracement, horizontal swing high resistance) where it is expected to reverse down to its support at 28788.6 (61.8% Fibonacci extension, 61.8% Fibonacci retracement, horizontal overlap support).
Ichimoku cloud also shows a corresponding reversal is expected.
HIS is approaching its support at 28788.6 (61.8% Fibonacci extension, 61.8% Fibonacci retracement, horizontal overlap support) where it could potentially bounce to its resistance at 29422.9 (50% Fibonacci retracement, horizontal pullback resistance).
Stochastic (89, 5, 3) is approaching its support where a corresponding bounce could occur.
Hey tradomaniacs,
welcome to my analysis for HANG SENG HSI.
Everything I want to say is shown in the chart.
Since this market is political-driven we should still wait for the outcome of the tradewar, especially for China and USA.
Every good news seems to be enough for the market to buy.. but still with a very low volume!
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US China trade war resolution more forcefully impacts Shanghai Composite and Shenzhen Component, but Hang Seng should also see some gains. Moreover, we have seen a bit more progress in the negotiations apparently with tech transfers, tech war. Let's see if it pans out though. For more, check out www.anthonylaurence.wordpress.com
