Hong Kong Hang Seng Index has been very volatile recently. Up and Down, Gapping here and there. Everytimes I look at Hang Seng chart, it gives me some phobia in this volatile stock market trends. However, volatility is not something to fear, but something to accept.
Ok, the global market was experiencing severe melt down last 2 weeks, including Hong Kong Hang Seng. I would like to post what are the early technical analysis signal that we can see on the Hong Kong Hang Seng before this global melt down happened.
Hong Kong Hang Seng form Descending Triangle
I did a post at the end August that I spotted a descending triangle formation on Hang Kong Hang Seng Index. I did a projection at that moment that the market may dive down to 15,744 level if the support did not hold. I have also looked at the Fibonacci support levels and I observed that all the supports keeping giving way. That’s a very important bearish signal to me.
I was slo looking closely on the moving average resistance level as well, Hong Kong HSI did not manage to break the MA resistance and therefore it will turn downward once it hit the 20d MA.
So, you can start to see that technical analysis does offer some signal on the stock market trends. If we can observe the signal early and take all the necessary action, volatile market is indeed not something to fear. We can even accept it as a way to invest our money or to make money out of it.
I have created a video to show you how to spot the descending triangle, Fibonacci support and moving average resistance on Hong Kong Hang Seng index, you can download the full resolution video below. If you have any comments or suggestion, do feel free to drop it down and I will be happy to answer any questions you may have and let’s all learn about technical analysis in a fun and money making way together.
Download High Resolution Video Here!
Hong Kong Hang Seng Index Stock Market Crash
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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