Chart of the day - Hang Seng short-term uptrend remains intact
Kelvin Wong February 23, 2018 5:10 AM
The recent slide of the Hong Kong 50 Index is more likely to be a pull-back within an on-going potential intermediate degree bullish impulsive upleg in place since 09 Feb 2018 low rather than the start of a pronounced corrective down move.
Short-term technical outlook on Hong Kong 50 Index (Fri, 23 Feb)
Key technical elements
- The recent pull-back/slide of the Hong Kong 50 Index (proxy for Hang Seng Index futures) from its 22 Feb 2018 minor swing high of 31619 has managed to stall at the pull-back support of a former descending trendline resistance from its current all-time high seen on 29 Jan 2018 and staged a rebound from it yesterday (depicted in dotted pink) (see 1 hour chart).
- The intermediate support now rests at 31060 (minor ascending channel support from 09 Feb 2018 U.S. session low) follow by the key short-term support of 30700/500 (the aforementioned pull-back support of the former descending trendline & minor swing low area of 20 Feb 2018) (see 1 hour chart).
- The next significant short-term resistances stand at 31800/32000 (61.8% Fibonacci retracement of the recent decline from 29 Jan high to 09 Feb 2018 2018 U.S. session low & the gapped down formed on 06 Feb 2018) follow by 32300/470 (76.4% Fibonacci retracement of the recent decline from 29 Jan high to 09 Feb 2018 2018 U.S. session low & the aforementioned minor ascending channel resistance) (see 1 hour chart).
- The daily RSI oscillator has started to inch above the 50% level which suggests that medium-term upside momentum of price action has resurfaced.
Key Levels (1 to 3 days)
Intermediate support: 31060
Pivot (key support): 30700/560
Resistances: 31800/32000 & 32300/470
Next supports: 30070 & 29070
Therefore, the recent slide from its 22 Feb 2018 high of 31619 is more likely to be a pull-back within an on-going potential intermediate degree bullish impulsive upleg in place since 09 Feb 2018 low rather than the start of a pronounced corrective down move.
As long as the 30700/560 key short-term pivotal support holds, the Index is likely to stage another potential push up towards 31800/32000 and above it reinforces a further rally to target the next resistance at 32300/470.
On the other hand, failure to hold above 30560 should negate the bullish tone for a deeper pull-back towards the next near-term support at 30070 (former minor swing high of 13 Feb 2018 & close to 61.8% Fibonacci retracement of the on-going up move from 09 Feb 2018 low to 21 Feb 2018 high).
Charts are from City Index Advantage TraderPro
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