hang seng index weekly outlook for 09 feb to 13 feb at 24350 support for a potential recovery 179142
<p>What happened last week The Hong Kong 40 Index (proxy for the Hang Seng Index) has rallied as expected and managed to hit the lower […]</p>
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What happened last week
The Hong Kong 40 Index (proxy for the Hang Seng Index) has rallied as expected and managed to hit the lower limit of our range target at 25000. Please click on this link for more details on our previous weekly outlook.
Key elements
- Price has retraced and now it is resting at the lower boundary of the ascending channel (in purple) at 24350.
- The 24350 level also confluences with the former horizontal resistance now turns support and 23.6% Fibonacci retracement from 16 December 2014 low to 05 February 2015 high (see daily & 4 hour charts).
- The intermediate term RSI oscillator is still above the pull-back support and 50% level (see daily chart).
- The 03 September 2014 swing high at 25400 also corresponds closely with the 1.382 Fibonacci projection from 16 December 2014 low to 06 January 2015 low (see 4 hour chart).
- The upper boundary of the ascending channel (in purple) now stands at 25870 which also corresponds closely with the 1.618 Fibonacci projection from 16 December 2014 low to 06 January 2015 low (see 4 hour chart).
- The short-term Stochastic oscillator has dipped into the oversold region (see 4 hour chart).
Key levels (1 to 3 weeks)
Pivot (key support): 24350
Resistance: 25150, 25400/25500 & 25870
Next support: 23800
Conclusion
The weekly pivotal support remains at 24350 for a potential recovery towards the 05 February 2015 swing high at 25150 before 25400/25500.
However, failure to hold above 24350 may see a deeper slide towards the next support at 23800.
Disclaimer
The information contained in this material 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 report, 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 Asia Pte Ltd
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