HSI - Direction Forecast with S/R ZonesHSI - Direction Forecast with S/R Zones
After last month 500 points up and down daily shake off Phase, Index has now come to the final phase of Elites' top level sell off phase, this month, we should see strong buys towards the resist zones, index will climb strongly towards it almost with no retreat, another 1200 points or more towards the level of 24000, it should drive the retail investors with madness, buying into the market without fear.
One need to watch out towards the mid or the end of Oct. where strong sharp drops could occur, so be careful, it is a month with much alert.
Trading the S/R Zones
Trading Rules:
All S/R Zones has power to reverse the trade, but once broken with a closing candle Support zone will become Resist zone, and Resist zone will become Support zone.
Only trade when levels in zones are touch for the first time with a 1 hour engulfing candle to confirm the reverse.
Do Not chase price, let the price come to the S/R zones before entries.
S/R levels between zones can be use as Take Profit or stop lost location.
Hang Seng HSI
Hang Seng Index - 07 Sept. 2016 - S/R zones for coming weeks07 Sept. 2016
Hang Senf Index - 4 Hour Chart
Index is now reach a resist level, but buying is strong, expect index to continues the up trend after a correction to the support levels.
The STRONG Resist Zone is where I expect a nice sell back down to the support zone below in this chart, once index manage to climb and reach it, may be in mid. Oct. so watch out for it!
Here was my previous long term Forecast of this trade:
HSI Direction Forecast since 30 Aug. 2015 to 02 March 2016
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Hang Seng If the recent developments in the markets hold and fear dissipates, I think a play on Hang Seng index would be terrific opportunity. To be sure, I am still expecting a slight pull back to around 18500.
This index is peculiar in the sense it has some good correlation with China but is not as violent as CSI index.
For someone with high risk appetite, this should work well. Some risk money could be allocated here.
Note: This is not exactly a China play. It's more of decoupling from the ridiculously elevated level of coupling play.
Short term set upThose who follow me know my opinion for 2016 is not exactly bullish,
but for the purposes of having fun trading, here is a short term set up.
IF CHINA FINISHES UP OVERNIGHT AND TOMORROWS ECON REPORTS ARE GOOD.
China, as of writing appears to be up over night.
We finished today with a long legged doji.
People will get greedy and buy on lows.
Happy trading, cheers.
Hong Kong HSI Index Daily (04.Oct.2014)Tech.Analysis TrainingThe Hang Seng Index (HSI) Daily Diagram Technical Analysis Training shows the following:
The HSI index has declined more and now is under the KUMO and EMA200 too. MACD is bearish and RSI is entering oversold levels.
So the first think in mind is that HSI will test the 22120 support.
There is no special candlestick pattern. The index is under the Tenkan Sen and Kijun Sen too (bearish). The index broke the EMA 200 and now it is under it.
Fib shows the 2.618 support at 22120.
Short for 22120 but be cautious for a reaction towards to EMA 200.
Hong Kong Protests Pushing HSIndex LowerWith the two day holiday in Hong Kong starting tomorrow the white collar sect of Hong Kong will be joining the demonstrations condemning Xi Jinpings proposal to screen candidates for the 2017 leadership election. I am looking at the index heading back towards the lows of May with the 0.236 fib level likely to act as the next support.