HSI significant pull back!

Look at 1H chart movement together with the MACD & KDJ indicator, the histogram for MACD line & signal line is getting weaker (you can see both indicators curve seems lower than the previous wave). We should monitor.

marked the time zone where the index turned bearish for the 1H chart. There was no re-entry position as trading in Asia time zone.

The significant pull-back continues when market re-open here. It's 10% pull back this morning. Well, this is a good chance to look at for a better re-entry level. However, we should be cautious to avoid catching falling knives 🗡

what we see from the 1H chart MACD & KDJ both are on the downtrend level/bearish red zone. However, we can look at the support level at 21580. If the index stays above this level then the uptrend is still intact. Otherwise, we could expect a more significant pull-back (cross-check with longer tf chart 4H,8H).

For shorter 1H tf swing trade check the 8H Chart for support/resistance level
Find support level at 21500-21700
and resistance level 22000 -22300
It has been climbing too fast and taking a break now. Personal POV, prefer the movement slow and steady forming a stable staircase; more sustainable.

Happy trading everyone! A pull-back is healthy for taking a breather.

Note

From the movement of 1h chart MACD line and signal has been reversed but still too early to bullish. Continue to monitor and wait for the signal line (orange line) reversed to break above zero line. Wait for the Golden cross. It's not far away the 4h chart MACD line and signal line is reversing slowly curling up!

The support level : 20190
Resistance : 21500 (break above 21700 and standing firm at 21500 level for bullish trend again)

ChenQianYu

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