Is a Hang Seng Revival on the Horizon?The Hong Kong Index has faced challenging years since reaching its all-time high in 2018.
The downtrend accelerated in 2021, bringing the index to a low of around 15,000.
The subsequent reversal aligned neatly with horizontal resistance and the 50% Fibonacci retracement level, indicating that the bears were not finished yet.
Indeed, 2023 also saw a continued downtrend.
However, and this is crucial, the index did not make a new low. Instead, the decline halted at the strong 15,000 support level.
In early 2024, a significant break above the falling trend line was observed at the end of April. The correction that followed confirmed the broken trend line, suggesting that this breakout is genuine and indicates a long-term shift in trend.
September began with a higher low, followed by a powerful surge above the 20,000 level for the first time in over a year.
This sequence of events suggests the potential beginning of a long-term bull trend, with the possibility of the index reclaiming the 23,000 level by 2025.
For those looking to initiate a long-term buy position, there are two key levels to watch: 19,500, the former resistance level, and 18,500, which now serves as strong support.
Hsiindex
Will HSI change its trend?Are there even Signs of Reversal ?
- Candlesticks below MA200 , Far from MA200
- Candlesticks moving below ichimoku clouds
- Downtrend Line B met expectation of 1:1 w.r.t Line A, within a shorter time with higher momentum
Take a look at the price Volume traded for the past 1600 days (to the range where last candlesticks were at this area). Total volume at this area seems thin. Where is the support?
Something to ponder: if the candlesticks reaches price of 24 to 26 (where more volume are traded at that range), will the holders cash in or cut loss?
However, if we zoom in, seems like a triple bottom is almost forming. A confirmation we will be waiting for will the breakout of the neckline.
Overall sentiment still doesn't look good. Mixed signals with downtrend still strongly intact.
Hang Seng- After fearHong Kong index dropped after china crack down again own companies but these were headlines in all media "Crack Down" , but reality is little different china want maximum cooperation from some giant companies and some security issues specially DIDI IPO in USA.
