hang seng index daily outlook thurs 12 nov maintain push up scenario above 22430 first support 17535
<p>(Click to enlarge chart) What happened yesterday The Hong Kong 40 Index (proxy for the Hang Seng Index) has traded sideways above the key 22260/22180 […]</p>
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What happened yesterday
The Hong Kong 40 Index (proxy for the Hang Seng Index) has traded sideways above the key 22260/22180 weekly pivotal support.
Please click on this link for a recap on our previous daily outlook/strategy.
Key elements
- Today’s morning (12 November) price action has staged a bullish breakout above the former short-term trendline resistance (in dotted pink) linking the highs since 04 November 2015 now turns pull-back support at 22430.
- Current price action is now resting just below our expected first upside target at 22630 (current printed high is 22619 as at 11.11am, SGT).
- The hourly (short-term) Stochastic oscillator has reached its extreme overbought level which highlights the risk of a pull-back in price action of the Index as current upside momentum has appeared to be “overstretched”.
- The key medium-term resistance remains 23100/23260 which is defined by the trendline (in red) joining the highs of 23 October and 04 November 2015 and a Fibonacci cluster (click here for more details as per highlighted in our latest weekly outlook/strategy).
Key levels (1 to 3 days)
Intermediate support: 22430
Pivot (key support): 22260/22180
Resistance: 22630 & 23100/23260
Next support: 21280
Conclusion
The Index may now stage a pull-back at this juncture towards the intermediate support at 22430 with a maximum limit set at the 22260/22180 weekly pivotal support before another round of push up to test the 23100/23260 medium-term range resistance.
On the flip side, failure to hold above the 22260/22180 pivotal support is likely to invalidate the expected push up scenario to see the start of a deeper decline towards the next support at 21280 in the first step.
Disclaimer
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