hang seng short term weakness prevails before potential recovery 1847782017
<p>Short-term Technical Outlook (Tues, 28 Mar 2017) (Click to enlarge chart) What happened earlier/yesterday The Hong Kong 50 Index (proxy for Hang Seng Index futures) […]</p>
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Short-term Technical Outlook (Tues, 28 Mar 2017)
What happened earlier/yesterday
The Hong Kong 50 Index (proxy for Hang Seng Index futures) had erased all its gains seen in yesterday’s opening session to print an intraday low of 24127 before it inched upward slowly in the European session.
Key technical elements
- From its 21 March 2017 high of 24672, the Index remains in a corrective decline phase within a medium-term uptrend in place since 28 December 2016 low.
- The key short-term resistance now stands at 24450 which is defined by the minor rang top in place since 22 March 2017 and the pull-back resistance of a former minor ascending trendline support from 09 march 2017 low.
- The short-term support rests at the 24100/24000 zone which is defined by the lower boundary of the medium-term ascending channel from 28 December 2016 low, the minor gap from 15/16 March 2017 and 23.6% Fibonacci retracement of the current medium-term uptrend from 28 December 2016 low to 21 March 2017 high of 24672.
- The hourly Stochastic oscillator has just exited from its overbought zone which suggests a revival of short-term resistance.
Key levels (1 to 3 days)
Pivot (key resistance): 24450
Support: 24100/24000
Next resistance: 25135
Conclusion
As long as the 24450 short-term pivotal resistance is not surpassed, the Index may see a further slide towards the 24100/24000 support before a potential recovery occurs (refer to latest weekly technical outlook over here).
On the other, a clearance above 24450 is likely to kick start another upleg to target 25135 next.
Charts are from City Index Advantage TraderPro
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