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.
