hang seng index daily outlook for thurs 11 june bearish move remains intact below 2705527220 resista
<p>(Click to enlarge charts) What happened yesterday The Hong Kong 40 Index (proxy for the Hang Seng Index) has broken below 26900 and plunged straight […]</p>
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What happened yesterday
The Hong Kong 40 Index (proxy for the Hang Seng Index) has broken below 26900 and plunged straight towards the expected target at 26530.
Please click on this link for a recap on our previous outlook.
Key elements
- The pull-back resistance of the “Double Top” bearish breakout is now at 27220 which also confluences with the 50% Fibonacci retracement of the down move from 04 June 2015 high to 10 Jun 2015 low and trendline resistance joining the highs since 26 May 2015.
- The hourly Stochastic oscillator has reached its overbought region.
- The next support at 25990 is a 1.618 Fibonacci projection from 27 April 2015 high to 26 May 2015 high.
Key levels
Intermediate resistance: 27055
Pivot (key resistance): 27220
Support: 26530 & 25990
Next resistance: 27830
Conclusion
The on-going push up in price action from the 26530 level is likely to be capped by the 27055/27220 resistance zone before another potential down leg occurs to retest 26530 before targeting next support at 25990.
On the other hand, a clearance above 27220 may invalidated the expected bearish move for a further squeeze up towards the 04 June 2015 swing high at 27830.
Disclaimer
This report is intended for general circulation only. It should not be construed as a recommendation, or an offer (or solicitation of an offer) to buy or sell any financial products. The information provided does not take into account your specific investment objectives, financial situation or particular needs. Before you act on any recommendation that may be contained in this email, independent advice ought to be sought from a financial adviser regarding the suitability of the investment product, taking into account your specific investment objectives, financial situation or particular needs. All queries regarding the contents of this material are to be directed to City Index, a trading name of GAIN Capital Singapore Pte Ltd.
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