$HSI #HongKong at two resistance lines and overbought
Updated
HSI has pushed through the 28200 barrier which is the two-year 38.2% and one year 61.8% barrier, but has now reached the confluence of two channels, both of which suggest resistance and a pullback. There is clear channel and earlier low support at 26700.
It’s not a great trade, but here is a good entry point, shorting 28400 (market). I have placed the stop at 29200 to be ultrasafe, so I need a full breakdown to 25750 or lower to get a decent (>3) RR. However, you could try to build a position with just 100 pt stop and see how you go.
If there is upward pressure, then it’s 29000 next stop. Note the overbought indicator on this channel has worked since September.
Also there is some similarity to early 2018 price/action.
It’s not a great trade, but here is a good entry point, shorting 28400 (market). I have placed the stop at 29200 to be ultrasafe, so I need a full breakdown to 25750 or lower to get a decent (>3) RR. However, you could try to build a position with just 100 pt stop and see how you go.
If there is upward pressure, then it’s 29000 next stop. Note the overbought indicator on this channel has worked since September.
Also there is some similarity to early 2018 price/action.
Note
More volatile than I thought. Assuming we didn't stop out, well on the way to a win.Trade active
Could possibly have taken profit at 26150, but let's see it ride out.
David Atherton
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