Hang Seng Index

Fig 1 Hang Seng Index weekly chart

I have earlier this month (its still August!) blogged about Hang Seng Index (HSI) and I mentioned of a fear for its reversal. It seems like this is coming true now.

HSI has since retreated from its peak and it is now testing its trend support. Base on the RSI and Stochastic indicator, there is a chance that this support would not hold. If HSI breaks this line, we are likely to see another winter come early. The trend support for HSI is 19,282, 21 weeks moving average support at 18,500 while 89 weeks is 18437.