Hang Seng Index Market Outlook 21-02-2010

Well it has been another volatile week for the Hang Seng Index. The HSI reach a peak of around 20500 point then fall back to around 19900.

3 Months daily Chart
On this chart, the HSI is still in a down trend. Its has recently formed a possible double top with the top at the level around 20500. Its seems like the HSI will drop further to around 19000-19500 in the short term.

1 Year Weekly Chart
The HSI remained below both 13 week and 30 week EMA. It was consolidating around the 20000 level for the past month. The distance between the 13 week and 30 week EMA are getting closer. If the 13 week EMA crossed down from the 30 week EMA, that will be a death cross. Which signalled possible bear market. That's what the technical side look like.

Overall I believe the economy is recovering well and I don't think a market crash will come in the near future. So what does this means, it means the current market correction is providing us with a good opportunity to buy good company at a fair price. Also HSBC is going to announce its final result on the 1st of March 2010. I am very confident that the result will be a good one. I think HSBC will go back to $100 within this year.

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