Hong Kong Hang Seng: Uptrend is Due This Year
Pretty weak, but still up
Hang Seng index, which represents Hong Kong stocks, was going down suring the recent few months. But right now it appears to be reversing, or at least correcting, to the upside. What to expect this year?
Let's recognize a bit of Hang Seng nature from the technical point of view. Look at the chart.
30% per rally
Most of the rallies last 6 years had the same overall percentage of price rise: 30-35%. So for now this is the "nature" of Hang Seng, which means we can expect the same % of growth in future rallies. Each rally usually takes around 4-6 months, so we may expect the same timing in the future.
Angles resistance
According to the angles drawn on my chart, we can see a pretty strong resistance somewhere in the red square. Once the price hits that square, the reversal to the downside (or at least bigger correction) is expected.
Price target: 28000 within this year
Once the uptrend is finally confirmed, expect the yearly top at around 28000. Angle resistance zone coincides with the 30% growth "nature", so this is a pretty realistic price target.
Hang Seng index, which represents Hong Kong stocks, was going down suring the recent few months. But right now it appears to be reversing, or at least correcting, to the upside. What to expect this year?
Let's recognize a bit of Hang Seng nature from the technical point of view. Look at the chart.
30% per rally
Most of the rallies last 6 years had the same overall percentage of price rise: 30-35%. So for now this is the "nature" of Hang Seng, which means we can expect the same % of growth in future rallies. Each rally usually takes around 4-6 months, so we may expect the same timing in the future.
Angles resistance
According to the angles drawn on my chart, we can see a pretty strong resistance somewhere in the red square. Once the price hits that square, the reversal to the downside (or at least bigger correction) is expected.
Price target: 28000 within this year
Once the uptrend is finally confirmed, expect the yearly top at around 28000. Angle resistance zone coincides with the 30% growth "nature", so this is a pretty realistic price target.
Note
The uptrend is on the way, everything is currently going according to the original forecast. Right now the HK index may experience a correction because it has touched the angle resistance. If it fails to break it within the next 2-3 months, then I may reconsider the forecast.Note
Everything is going well, just as I originally forecasted. The Hang Seng index is approaching the strong resistance zone now. 
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