hang seng index daily outlook 03 nov potential push up to test medium term upside trigger level at 2
<p>(Click to enlarge charts) Key elements The Hong Kong 40 Index (proxy for the Hang Seng Index) has staged a bullish breakout above its former […]</p>
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Key elements
- The Hong Kong 40 Index (proxy for the Hang Seng Index) has staged a bullish breakout above its former short-term trendline resistance (in dotted green) joining the highs since 23 October 2015 @9pm now turns pull-back support at 22500.
- The corresponding hourly (short-term) RSI oscillator has also pierced above its former trendline resistance and the 50% neutrality level. These observations suggest upside momentum remains intact and the RSI still has room for further upside before reaching its extreme overbought level.
- The medium-term trigger level remains at 23100 which is defined by a longer-term trendline resistance in place since 26 May 2015 (click here for more details as per highlighted in our latest weekly outlook).
Key levels (1 to 3 days)
Pivot (key support): 22500
Resistance: 23100
Next support: 22260/22180 (weekly pivot)
Conclusion
As long as the daily (short-term) pivotal support holds, the Index is likely to see a continuation of its current bullish move to test the medium-term upside trigger level at 23100.
On the flipside, a penetration below the 22500 pivotal support may invalidate the expected bullish tone to see a slide to retest the pull-back support of the “Double Bottom” bullish breakout at 22260/22180.
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