The HSI had pull back from it recent high of 22200 to 21200 secondary to profit taking as we have suggested.
3 Months Daily Chart
The HSI has move under the 7 and 30 day EMA indicating the short term HSI is back to its value zone. It is like to attract more trader to buy at this price and it will should some support around the 21200 level. The HSI should rebound in the short term.
1 Year Weekly Chart
The HSI is resting on the 13 week EMA. On the weekly chart, it seems very obvious to me the HSI was bound to the 22000 to 20000 trading range for more than 7 months. It is really time for the HSI to break out of this range and move higher.
Overall I am bullish on both long and short term. I am waiting for the second wave of market rally which will hopefully reach the 25000 level or more.
Article by
Trading Room
www.tradingforreal.blogspot.com
Saturday 24 April 2010
Saturday 17 April 2010
Hang Seng Index Market Outlook 2010-04-18
As expected my from last comment, the HSI did received some selling pressure on around the 22000 level. Ending the week at around the 21800 level.
3 Months Daily Chart
On the Daily chart, the HSI had fall back to the 7 day EMA and staying above the 30 day EMA. The Bollinger band had get continue to get wilder compare to the previous week. In my opinion, the HSI is likely to fall to 21500 level and get support from there. Overall the three month trend is an up.
1 Year Weekly Chart
Both 13 and 30 week EMA are pointing upwards and HSI staying above both EMA. On the weekly chart, it seems to me that it is very likely the HSI will break above the 22000 level and go to probably 23000 level in the longer run. The current 1 year trend is UP.
Overall I am bullish on both short and long term. The HSI may fall lower but I think it is very unlikely to fall below 21000 level.
Article by
Trading Room
www.tradingforreal.blogspot.com
3 Months Daily Chart
On the Daily chart, the HSI had fall back to the 7 day EMA and staying above the 30 day EMA. The Bollinger band had get continue to get wilder compare to the previous week. In my opinion, the HSI is likely to fall to 21500 level and get support from there. Overall the three month trend is an up.
1 Year Weekly Chart
Both 13 and 30 week EMA are pointing upwards and HSI staying above both EMA. On the weekly chart, it seems to me that it is very likely the HSI will break above the 22000 level and go to probably 23000 level in the longer run. The current 1 year trend is UP.
Overall I am bullish on both short and long term. The HSI may fall lower but I think it is very unlikely to fall below 21000 level.
Article by
Trading Room
www.tradingforreal.blogspot.com
Saturday 10 April 2010
Hang Seng Index Market Outlook 11-04-2010
The HSI has reach out target of 22000. It been a very bullish week despite having only three trading days.
3 Months Daily Chart
On the daily chart, the HSI has move outside the Bollinger Band, indicating increasing volatility and showing the strength of the Bull. The HSI close on Friday at around 22200 level. The HSI has lift off from the 7 and 30 day EMA. Which seemed to tell me that in the short run, the HSI is a bit overvalue on a technical basis and it is likely to meet more selling pressure from traders next week. But the HSI will regain support if it fall back to the 30 day EMA.
1 Year Weekly Chart
The HSI has breakout from the trading range of 20000 to 22000. The HSI is staying above 13 and 30 week EMA with both EMA pointing upwards. All these are longer term bullish signs. I predict the HSI should be able to reach 25000 at the end of the year.
Overall I am bullish in the longer term, in the short term I mean few days to 1-2 weeks. The HSI is going to meet some selling pressure so I don't expect the HSI to move upward a lot. For me I will continue to hold on to my long positions.
Article by
Trading Room
www.tradingforreal.blogspot.com
3 Months Daily Chart
On the daily chart, the HSI has move outside the Bollinger Band, indicating increasing volatility and showing the strength of the Bull. The HSI close on Friday at around 22200 level. The HSI has lift off from the 7 and 30 day EMA. Which seemed to tell me that in the short run, the HSI is a bit overvalue on a technical basis and it is likely to meet more selling pressure from traders next week. But the HSI will regain support if it fall back to the 30 day EMA.
1 Year Weekly Chart
The HSI has breakout from the trading range of 20000 to 22000. The HSI is staying above 13 and 30 week EMA with both EMA pointing upwards. All these are longer term bullish signs. I predict the HSI should be able to reach 25000 at the end of the year.
Overall I am bullish in the longer term, in the short term I mean few days to 1-2 weeks. The HSI is going to meet some selling pressure so I don't expect the HSI to move upward a lot. For me I will continue to hold on to my long positions.
Article by
Trading Room
www.tradingforreal.blogspot.com
Saturday 3 April 2010
Hang Seng Index Market Outlook 03-04-2010
The HSI had continued to do well last week, reaching a even higher high level of 21500 for the last month. There is something I want to emphasis about this point, whenever a stock price or a index is reaching a higher high compare to the previous high level. We say the price is advancing well. Another well to put it is saying the bull is getting stronger because it was able to push the price up to a higher level. As I said before, an uptrend is characterized by higher peaks and higher troughs.
3 Months Daily Chart
It seems that the HSI is going to break above 21500 level and advance further to 22000. The HSI finished on Friday with a Bullish Bar. My definition of a Bullish bar is on that period the HSI open on the low end of the bar and close on the high end with price range having a higher high and higher low compare to the previous bar. I reckon this is quite a bullish signal on a daily chart. Some trader might see this signal as a trigger of entry for long position when this signal is associate with a short term uptrend (which it was in this case.) And also Bollinger Band had been narrow, so the premium for Call Option will be relatively cheap. On an option trader perspective, it can be a good opportunity to open a long Call on HSI last Friday. P.S. HSI had continue to stay above both 7 and 30 day EMA.
1 Year Weekly Chart
On the weekly chart, it shown a similar bullish bar last week. The distance between the 13 and 30 Week EMA had become more further apart. And both EMA are starting to turn up with HSI staying above both EMA. All these are bullish signs. In fact you can see the HSI has actually formed a trading range between the level 22000 and 20000 over the past 7 months. In my opinion, the Market was resting on this trading rest before it is going to form another big bullish move. Prior to this trading range, HSI had advanced from 12000 to 20000 which was a big move indeed. The market need some time to rest before it can advance further.
Article by
Trading Room
www.tradingforreal.blogspot.com
3 Months Daily Chart
It seems that the HSI is going to break above 21500 level and advance further to 22000. The HSI finished on Friday with a Bullish Bar. My definition of a Bullish bar is on that period the HSI open on the low end of the bar and close on the high end with price range having a higher high and higher low compare to the previous bar. I reckon this is quite a bullish signal on a daily chart. Some trader might see this signal as a trigger of entry for long position when this signal is associate with a short term uptrend (which it was in this case.) And also Bollinger Band had been narrow, so the premium for Call Option will be relatively cheap. On an option trader perspective, it can be a good opportunity to open a long Call on HSI last Friday. P.S. HSI had continue to stay above both 7 and 30 day EMA.
1 Year Weekly Chart
On the weekly chart, it shown a similar bullish bar last week. The distance between the 13 and 30 Week EMA had become more further apart. And both EMA are starting to turn up with HSI staying above both EMA. All these are bullish signs. In fact you can see the HSI has actually formed a trading range between the level 22000 and 20000 over the past 7 months. In my opinion, the Market was resting on this trading rest before it is going to form another big bullish move. Prior to this trading range, HSI had advanced from 12000 to 20000 which was a big move indeed. The market need some time to rest before it can advance further.
Article by
Trading Room
www.tradingforreal.blogspot.com
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