hang seng index daily outlook for fri 10 july recovery remains intact above 2425023790 support 82343
<p>(Click to enlarge charts) What happened yesterday The Hong Kong 40 Index (proxy for the Hang Seng Index) has performed better than expectation without staging […]</p>
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What happened yesterday
The Hong Kong 40 Index (proxy for the Hang Seng Index) has performed better than expectation without staging a pull-back as it continued to march higher
*In today’s early morning session, 10 July 2015, the Index has continued to rally and hit our expected target at 24720/24850.
Please click on this link for a recap on our previous daily outlook.
Key elements
- The 20-hourly Moving Average is coming to act as a support at around 23790 which is also the 50% Fibonacci retracement of the recent up move from 08 July 2015 low @3pm to the current 10 July 2015 high @9am.
- The trendline resistance joining the highs since 24 June 2015 @8pm is now at 25450.
- The next significant short-term resistance will be at 26400 which is also the 61.8% Fibonacci retracement of the recent steep down move from 27 April 2015 high to 08 July 2015 low.
- The hourly Stochastic momentum oscillator is turning up and still has some room for further upside before reaching its extreme overbought level.
- Price action has formed an impending bullish weekly “Hammer” candlestick pattern right at its 23600/23500 key long-term support.
Key levels
Intermediate support: 24250
Pivot (key support): 23790
Resistance: 25450 & 26400
Next support: 22710/22550
Conclusion
Technical elements are still positive, thus we maintain our short-term bullish bias as long as the 24250/23790 support zone holds. Right now, a break above the 25450 short-term trendline resistance is likely to add an impetus for a further potential rally to target 26400 next.
However, failure to hold above the 23790 daily pivotal support is likely to invalidate the expected further recovery scenario to see another round of slide to target the next support at 22710/22550.
Disclaimer
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