Hang Seng putting in base for some July joy?!Hang Seng (HSI) which is heavily property weighted and led by some key stocks eg Tencent had one of its larger sell offs today, but looked to possibly put in a base around the key technical futures levels of around the 25000's /25500's. Bullish seasonality normally strong over July so a potential dip buying opportunity or part of a more major global weakness in the larger stock indices? Downside support levels at: 25000, then 24500's. Upsides: early to mid 27000's?
Hang Seng HSI
China Shenhua - Gapup Long Recovery towards 27 A stock that's moved 90% up from lows which is a 1.414 Fibonacci retracement on the monthly and a nice gapup on the weekly shows me this is a bullish recovery reversal. Although understandable that 19.46 will act as temporary resistance, the more this stays above 18, I will see a persistence for this to go as high as 23-27 in the next year or so :)
HSI - Nov 2016 - Sell at Resist levels and ZonesHSI - Nov 2016 - Sell at Resist levels and Zones
HSI is running below the 50 days MA, sign of weakness, the retreat was forecast last month, and it should continues through this month towards the support zones.
Wait for confirmation of engulfing red in 1 to 2 hour candle when ever index rebound back to resist levels and zones to confirm the sell trade. profit take at support levels and support zones as rebound could occur once index reach these levels.
HSI - 11 Oct. 2016 - Weekly Update HSI - 11 Oct. 2016 - Weekly Update
Index has dropped suddenly after open high this morning at 24064, a little higher than previous week at 24000 top level, very clearly, market in HK is rejection this level, but elites again will act differently, there could still be chances that Index might push up one more time during US open hours. So those that has started selling the CBBC or Bear options could lose their trade before the true turn around.
But all this ideas are really depends on how money (candle) react to these zones. so watch out and trade according to the position that the candle relate to the levels in the chart.
For Long term is sell.
Short Term still have a chance for a sharp rebound to take out the Bears before the real drop.