We have experience some severe correction last week, with the HSI dropping more than 1000 point. The market has been in a bit of a panic mode. The reason people say about the correction was because of the Debt crisis in Greece which might progress throughout the whole European market. In my opinion, the market had definitely overreact.
3 Months Daily Chart
On the daily chart, we can see wilden Bollinger Band which meant increasing volatile of the market. The HSI bar is currently outside the Bollinger Band, meaning the market in the short term has been oversold. It is likely we can see some support in this level.
1 Year Weekly Chart
HSI has dropped back to the recent low level of around 19000. Here we can see a potential double bottom forming if the HSI rebound from this level. If HSI continue to penetrate below the 19000 level, we might be able to see HSI to go even lower.
Currently the market is fill with uncertainty. If I am a buyer, I will start buying more security at bargain price, of coz there is no promise that the market won't go lower, but if the market goes lower, you can continue to average down your position. So don't eat too full, there might be more bargain ahead.
Article by
Trading Room
http://www.tradingforreal.blogspot.com/
Subscribe to:
Post Comments (Atom)
Subscribe To Trading room
Posts
Comments
No comments:
Post a Comment