hang seng index daily outlook for wed 15 july maintain short term bearish bias below 2518025400 resi
<p>(Click to enlarge chart) What happened yesterday The Hong Kong 40 Index (proxy for the Hang Seng Index) has traded sideways but remained below the […]</p>
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What happened yesterday
The Hong Kong 40 Index (proxy for the Hang Seng Index) has traded sideways but remained below the 25400 daily pivotal resistance as expected.
Please click on this link for a recap on our previous daily outlook.
Key elements
- Current price action has tested and managed to retreat from the short-term trendline resistance (in pink) joining the highs since 24 June 2015 @7pm at 25180.
- The 25180 resistance also confluences closely with the 50% Fibonacci retracement of the recent down move from 24 June 2015 high @7pm to 08 July 2015 low @3pm.
- The hourly Stochastic oscillator has just inched down from its overbought region and still has further downside potential before reaching its extreme oversold level.
- The 24560/24250 support also coincides with the 23.6%/38.2% Fibonacci retracement of the recent up move from 08 July 2015 low @3pm to the 13 July 2015 high @9pm.
Key levels
Intermediate resistance: 25180
Pivot (key resistance): 25400
Support: 24560 & 24250
Next resistance: 26400
Conclusion
Short-term technical elements are still bearish. As long as the 25400 daily pivotal resistance is not surpassed, the Index is still likely to stage a short-term decline towards 24560 before 24250 within the medium term (multi-week) potential bullish trend.
On the other hand, a break above the 25400 resistance is likely to see the continuation of the multi-week bullish trend to target the next resistance at 26400 in the first instance.
Disclaimer
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