Short-term technical outlook on Hong Kong 50 Index (Tues, 30 Jan)
Key technical elements
- The Index has started to show signs of a minor corrective decline after recent 19% rally from its 07 Dec 2017 low. Price action has broken below its minor ascending channel support from the minor swing low area of 15 Dec 2017 now turns pull-back support at 32800.
- The key short-term resistance stands at the 33100/170 zone which is defined by the former minor swing high area of 24 Jan 2018 and the 61.8% Fibonacci retracement of the on-going slide from yesterday high of 33530.
- Short-term downside momentum of price action remains intact as indicated by the hourly Stochastic oscillator has hooked down from its overbought region.
- The near-term supports rest at 32615 follow by 32150/32000 which is defined by the minor swing low area of 22 Jan 2018 and close to the 23.6% Fibonacci retracement of the up move from 07 Dec 2017 low to 29 Jan 2018 high.
Key Levels (1 to 3 days)
Intermediate resistance: 32800
Pivot (key resistance): 33100/170
Supports: 32615 & 32150/32000
Next resistance: 33530
Therefore as long as the 33100/170 key short-term resistance is not surpassed and a break below 32615 is likely to kick start a minor corrective mean reversion decline phase to target the near-term support of 32150/32000 in the first step.
On the other hand, a clearance above 33100/170 should put the mean reversion decline scenario on hold for a squeeze back up to retest the key 33530 medium-term pivotal resistance.
Chart is from City Index Advantage TraderPro
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