Hang Seng Index (HSI) Facing Downtrend Pressure

 


Hang Seng Index (HSI) Facing Downtrend Pressure

What are we expecting?
Hang Seng Index (HSI) fell below its key support level at 28,000. This break is more significant than usual as HSI has just experience index being halted at 31,000 level, and mounting Supply as indicated by our proprietary FFI (Fund Flow Index) indicator. 

These actions suggest the index is in a Distribution Phase, entering Mark Down phase.

First level of support for HSI will be at 26,000 area cushioned by high volume area and 1.618% Fibonacci level.

Who should be concerned?
Investors: Investing in the Hong Kong Market may reduce position at this point but also keep a lookout for stocks that show signs of bottoming during the Mark Down process.

Traders: Taking short positions is preferred till 26,000 target reach or character of accumulation phase is observed. 

Why the Mark Down?
Stock market is always forward priced, we will not be able to clearly define the reason till 3-6months later. One marco trend that is developing is expectation of inflation, which leads to hike in interest rate environment, threatening companies recovering from the COVID-19 pandemic.


*Disclaimers apply


Popular posts from this blog

MIT: Expecting Change of Momentum after Existing Downtrend Line

Image
  MIT: Expecting Change of Momentum after Existing Downtrend Line What are we expecting? Mapletree Industrial Trust ( ME8U ) broke its key downtrend line on 18 Mar 21, technically signaling positive trend change. Similar to Apr 2020 move. Momentum Indicator, MACD (bottom of the chart) is displaying a upward sloping momentum which is supportive of the technical move. Who should be concerned? Investors:  Consider increasing allocation into ME8U under income portfolio, with current indicative yield of 4.50%. Traders: Taking Long positions  with 1st target price at S$2.95, next at S$3.30.Stop Loss below S$2.50. *Disclaimers apply
Read more

Chart Review: Xiaomi (1810:HK)

Image
Xiaomi (1810) We shared that Xiaomi have broke out of its Accumulation zone and is entering the Mark Up phase. Price continues to mark up as analysed. Congrats if you have followed the trade.  Accumulation Phase is a zone where supply exhaust and demand overtake the dominance. Also a zone where smart money comes into the market and pick up the stock at a low price. A break out from this zone will expect to see continuation of price mark up untill supply comes in. Understanding the Wyckoff's Accumulation Phase  helps individuals trade alongside with smart money.  Disclaimer applies.
Read more

Target Price Reached for S&P 500

Image
Today's Chart Forecast Chart Amid negative COVID-19 news and lock-down announcements,  S&P 500 traded upwards as forecast. Financial markets moves somewhat in a different pace with the real economy. Technical analysis and demand supply studies provide helps bridge the gap. 
Read more