Last week I review the Hong Kong HSI weekly stock market trends. I mentioned that bear is winning the market at 60:40 chance. And indeed, the market dive down and also broke the Hang Seng support of the March low. Finally, both Singapore and Hong Kong market gave way to the bear.
Breaking the descending triangle for HSI is very bearish. Let’s take a look at the stock market trends of HSI in the coming week!
HSI Weekly Stock Market Trends
As HSI broke the descending triangle formation, the target of the dive will be approximately at 15,744 level. That is nearly a 4000 points decline on the current level. This is very scary. Plus, using the fibonacci project, the 15,744 is very near to the 150% project of the decline. Maybe you might say it is coincident, but I do think there is some correlation between the 2 projection. To be conservative, I will be cautious that the market may indeed dive down by 4,000 points.
HSI was very volatile last week, one day down and one day up. The average true range (ATR) is 500 points, you need to exercise extra cautions if you are in this market. Your stop must be wider than the ATR otherwise, you can easily eaten by the market.
Similar to the Singapore STI stock market trends, the support will turn to be a resistance after the breakage of the descending triangle. Both ADX and MacD indicators are still showing downward trending.
Olympics is over. The is some uncertainty in China stock market which can easily spilled over to the Hong Kong market. Plus, there is also quite a big financial crisis might be surfacing in the US too.
Looking ahead, the Hong Kong HSI stock chart is still on the down trend at 60% bear is winning.
Fellow traders, trade with cautions 
Hong Kong Hang Seng Index HSI Weekly Stock Market Trends
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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