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by Darius Anucauskas

Hang Seng Pushes Higher And Ends The Week In Positive Territory

It was only on Thursday that the Hong Kong’s Hang Seng index followed its Chinese counterparts in their journey north. The price climbed above the high of last week, at 25113, and continued to move higher today, temporarily overcoming the highest point of June, at 25324, but failing to close above it. As we can also see, the index was halted near its 200-day EMA, which we will now monitor carefully, as a possible good barrier. Hang Seng is also balancing above its short-term upside support line taken from the low of May 29th, which may support the bullish case, for now.

If Hang Seng rises above the June high once again, which is at 25324, and also overcomes the above-mentioned 200-day EMA, that may increase the chances of seeing the price rising further, where the next resistance mark might be at 25740, which is the high of March 10th. The index may stall there for a bit, or even retrace slightly lower. However, as long as Hang Seng continues to trade above the previously-discussed upside line, we will stay positive with the near-term outlook. Another uprise and this time a break of the 25740 hurdle, would confirm another forthcoming higher high, potentially allowing Hang Seng to set sail towards the 26764 level, marked by the high of March 5th.

The RSI and the MACD are both pointing higher. The RSI is also sitting above 50 and the MACD remains above zero and its trigger line. For now, the two oscillators seem to be showing upside momentum. which supports the above-discussed scenario.

Alternatively, if the aforementioned upside line breaks and the price falls below the low of this week, at 24122, that may lead to a change in the short-term trend, possibly opening the way towards further declines. Hang Seng might then travel to the 23637 obstacle, a break of which could set the stage for a test of the 23173 level, marked by an inside swing high of May 29th.

HangSeng-Daily

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