Long term view on the Hang Seng Index.
Monthly timeframe seems to be forming a symmetrical triangle with PA resting just above the 200 EMA. Relative strength index in a make or break position where we will bounce from over a decades support, or breakdown and visit oversold conditions. Fisher is at the lows and looking to start pointing up. We are also looking at a potential double bottom with the covid lows.
Note
From a fundamental aspect the index has been one of the worst performing globally over the past year (17.5% down) and has become completely detached. 9.3 P/E ratio compared to 18 ish for the S&P 500. Also is below 5 year average which is attractive looking at things on a longer time frame.Note
Zoomed into the daily we see a well established descending channel. We are watching for a potential triple bottom with a nice hammer candle. RSI approaching oversold conditions but not quite there yet. Bullish shark formed
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