The Most Scary & Important Chart You NEED to See Right Now $HSIThe mainstream media is blaming the mysterious virus in China for the pullback in the Hang Seng index, we as a technical analyst view it differently.
Bullish view - It should bounce at the moving averages (red box) and confirms the double bottom and break out.
Hang Seng HSI
prediction of hsiI predict that HSi will hit its highest price in 21 days at a value of 29000
It is believed that this should be is highest price as more data about the economy will be announced after the Chinese New Year which is predicted negative as the protests in Hong Kong had caused a big hit at the economy.
Therefore, front view of the stock market in Hong Kong is quite negative as predicted.
HSI approaching support, potential for a bounce!
HSI is expected to drop to 1st support at 27771.5 where it could potentially react off and up to 1st resistance at 28777.6.
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[ Short ] Cathay PacificLiving in Hong Kong, I am seeing the protests re-emerge literally outside my flat. I do believe this will have a continued impact on tourism here in the S.A.R.; notably from Mainland Chinese.
HK Tourism
I believe the move which began on 8 OCT is a result of the "Phase 1 of the Trade Deal." ( same day as Trump started it ). While I believe greater "USA election related progress" will be made on that front, the protests are not stopping & have been / exp. to continue to have a direct impact on this particular equity.
As of now, this ~3 month retracement represents a ~1.5 standard deviation from the mean looking back on the past 20 Yrs. Further relevant items below:
Would love to hear any / all comments & suggestions; notably on the Target / Time Horizon albeit any / all would be appreciated.
Cheers.