Hang Seng Weekly Time Frame
Hang Seng Index Futures (HSI1!) - Weekly Chart Analysis (Feb 17, 2025)
1. Trend Analysis
The chart suggests that HSI is in a long-term upward channel, respecting both upper and lower trendlines.
The index recently rebounded from the lower trendline, indicating a strong support level holding.
A potential uptrend continuation is forming, aiming for higher resistance levels.
2. Key Levels
Support: The lower boundary of the upward channel (approx. 17,500 - 18,000).
Resistance: The horizontal zone around 25,000 - 27,500, which has historically acted as a key resistance level.
Major Trendline: If price action remains above this trendline, the bullish momentum could continue toward 30,000+.
3. RSI Indicator
The Relative Strength Index (RSI) is at 68.62, close to the overbought zone.
Historically, RSI reaching this level has often preceded corrections, suggesting a possible pullback before further upside.
However, RSI remains in a bullish structure, supporting a longer-term uptrend.
4. Potential Scenarios
📉 Bearish Scenario (Pullback First):
If resistance at 25,000 - 27,500 holds, a pullback toward 20,000 - 21,000 could happen.
A deeper retracement might test the trendline support near 18,000 before resuming an uptrend.
📈 Bullish Scenario (Breakout to New Highs):
If price breaks and holds above 27,500, we could see a continuation toward 30,000 and potentially the upper channel limit at 32,500.
Any successful retest of previous resistance as support would confirm further upside momentum.
Conclusion
Mid to long-term trend remains bullish as long as the price stays above the trendline.
Short-term pullback possible due to RSI nearing overbought conditions.
Key breakout zone: Watch 25,000 - 27,500 for direction confirmation.
1. Trend Analysis
The chart suggests that HSI is in a long-term upward channel, respecting both upper and lower trendlines.
The index recently rebounded from the lower trendline, indicating a strong support level holding.
A potential uptrend continuation is forming, aiming for higher resistance levels.
2. Key Levels
Support: The lower boundary of the upward channel (approx. 17,500 - 18,000).
Resistance: The horizontal zone around 25,000 - 27,500, which has historically acted as a key resistance level.
Major Trendline: If price action remains above this trendline, the bullish momentum could continue toward 30,000+.
3. RSI Indicator
The Relative Strength Index (RSI) is at 68.62, close to the overbought zone.
Historically, RSI reaching this level has often preceded corrections, suggesting a possible pullback before further upside.
However, RSI remains in a bullish structure, supporting a longer-term uptrend.
4. Potential Scenarios
📉 Bearish Scenario (Pullback First):
If resistance at 25,000 - 27,500 holds, a pullback toward 20,000 - 21,000 could happen.
A deeper retracement might test the trendline support near 18,000 before resuming an uptrend.
📈 Bullish Scenario (Breakout to New Highs):
If price breaks and holds above 27,500, we could see a continuation toward 30,000 and potentially the upper channel limit at 32,500.
Any successful retest of previous resistance as support would confirm further upside momentum.
Conclusion
Mid to long-term trend remains bullish as long as the price stays above the trendline.
Short-term pullback possible due to RSI nearing overbought conditions.
Key breakout zone: Watch 25,000 - 27,500 for direction confirmation.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.