May 18-20, TA for Hang Seng Index,
- Trending - Down (approaching 200D Moving Average and MACD in -ve range)
- Momentum - Oversold (confirmed by Stochastic at <20%)
- Support - 22,645
- Resistance - 24,412
- Volume - Volume decreasing
- Chart Pattern - Range Bound trading, see the nice support/resistance line.
Hang Seng Index is testing the important 200D MA and it's near to support of 22,645. From chart pattern, it seems to be trading is Range bound. But from the volume prospective, it is decreasing or below it average - sign of market weakening. Once the index moving below the 200D MA, it indicates a confirmation of Down trending. So I would look out for 3 signals - Price below 200D MA, Price break Support line 22,645 and decreasing Volume (near 1.5b). It's a sign of Down Trend confirmation. If you have LONG position, reduce it. Get Ready, your SHORT.
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