Sunday, February 28, 2010

Hang Seng Index


Hong Kong stock market improved over the week. The Hang Seng index dropped below its 200 day moving average in early February but managed to close slightly above it for the last trading session of February.

The technical charts are showing a mixed picture.

The MACD signal is above its indicator line which is a bullish sign. However, the RSI is approaching overbought levels. In a bullish environment, market may stay in overbought territory for some time before falling back. But this time, the ADX is not indicating a bullish trend and –DI is still above +DI. Hence, at best we are seeing a slow down in the down swing.

The market is most likely going to move sideways with the 100 day moving average serving as resistance and 200 day moving average acting as support level.

A break below the 200 day moving average will be a negative sign and if that level is taken out, the next support will be at 19400 level which is near the low set in 8 Feb 10.

at

No comments:

Post a Comment

Subscribe to: Post Comments (Atom)

STI Sideway To Bearish Tone

US market had a bad closing last night.  Dow plunged by 243 points.  It seems like we are seeing more volatility recently.  With earnings...

  • STI Sideway To Bearish Tone
    US market had a bad closing last night.  Dow plunged by 243 points.  It seems like we are seeing more volatility recently.  With earnings...
  • The Impulse System
    This system has been covered in a number of books by Dr Alexander Elder. From the book “Entries and Exits, Visit To Sixteen Trading Rooms”, ...
  • Time Based Index Trading Method
    There is a market saying that one should sell in May and go away.   This year, this theory proved to be a good advice.  Let’s do a study on...