While I started to post Australia ASX Stock Market Trends on this blog yesterday, indeed ASX close higher today with a white candle plus higher volume. The resistance I will be cautious on ASX is the 100d MA.
I decided to expand further to include Hong Kong stock market trends today. I look at the Hang Seng index. I found that HSI is now trading below all the critical MA lines, implying a downtrend market. However, is there any short term rebound coming?
I decided to look at it using EMA envelope instead. I found that HSI is now trading in the 5% EMA envelope oversold region, plus 2 days of white candle, there is a possible rebound. Plus, both RSI and stochastic are in the oversold region as well.
It looks like a good opportunity to Long the market. However, I will not open any Long position at all simply because the current major trend is down trending market. The market can turn downward anytime. The reward will not be big to open a Long position now, plus the risk is too high too.
I will rather wait for it hit the resistance near the 20d EMA line and open short position when it turns down. That will offer a better reward than risk. Remember, trend is your friend, my guiding principle is follow the major trend, do not go against it 
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.
