I was sharing last week that the Hong Kong Hang Seng Index broke the descending triangle formation and it was about the test the target of the descending triangle. Indeed, Hong Kong Hang Seng index hit the target and it kept diving downwards.
Let’s take a look at the next Hang Seng stock market trends and its next key support level now.
Hang Seng Hit Resistance and Turn Bear Again
After breaking the support level at approximately 15,500, there was a small rebound last monday and bring the index back tot he 15,500 level. However, 15,500 was the support before and it now turned to be a resistance level. Therefore, you can see that the last 4 days was continually down trends after hitting this resistance at 15,500.
Hong Kong Hang Seng Index lost about 3000 points last week and it looks to keep breaking new low and that is a key characteristics of a down trending market.
I am seeing the next support level to at approximately 11,500 level, it will be extremely worse that the market can dive down to the 2003 low level if this support gives way. The low in 2003 was about 8,700 level.
If that happens, it would mean all the gain we have in the last 5 years will be gone. Plus, you can see that there is a lots of fear in the market due to the fear of the global recession. It might be wise to get out of the market if you can, otherwise, shorting will be another alternative to hedge or to profit from this down trending market.
Hong Kong Hang Seng Index 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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