You can see that many Asian stock markets had a Black Friday last week after the news about Dubai default. Hong Kong Hang Seng led the fall of about 1,000 points in a single day which is equivalent to 4.8%.
Let’s take a look at the Hong Kong Hang Seng using Technical Analysis now!
Hong Kong Hang Seng Broke Supports
If you look at the chart of the Hang Seng now, you can see that the gap down formed last Friday has become an immediate resistance now at approximately 22,110 level. You can also see that Hang Seng has broken down the upward channel and also it broke the 20d and 50d EMA support.
Hang Seng is now supported at the 100d EMA and also supported at the previous low of 21,130 level, which was last Friday close.
All indicators are showing some downward pressure that Hang Seng is experience now.
Price Movement in Coming Week is Critical
If you ask about the overall market, I would say that the bullish market is still intact as Hang Seng is still trading above the 200d MA. However, it is important to monitor the price movement in the coming week.
If Hang Seng is not able to break above the gap resistance, there is a likelihood to form a head and shoulder pattern, which can signal possible reversal. The support of 21,130 is also critical because the market can form a lower low if this support does not hold, which again may signal possible begining of a down trend.
So, remember to monitor closely in the coming week usnig technical analysis to be an informed trader in the market, then, you won’t be caught with surprise.
Happy Trading!!!
Hong Kong Hang Seng Black Friday Fall
DISCLAIMER: This information is used for learning purposes only. It does not constitute an offer or solicitation to buy or sell. You should do your own analysis on top of my postings.
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