HSI review

On my last entry about HSI, I predicted it to reverse the next day. I was right...at least for a day. My predict based on the fact that A wave was a zigzag,and B wave should follows the same pattern. The worst case I could see was it being supported at its "envelop" @20,940.


Fig 1 HSI Weekly chart

I am surprised that HSI broke through this level on Friday (yes, only on Friday that it broke below the support and stayed). Seems like its B wave was only a single up-move because this is very likely a C wave with its new low.

In the short run, it might still rebound back up before it heads further south. If base on the present set up producign a Double Top, its new objective is 18,980 instead of the earlier Wedge 19,647.The new objective seems more realistic because this also coincidence with the Fibonacci retracement of 38.2%.

Its nearest support is the 89 weeks moving average @19,740 while 21 weeks moving average is now resisting @21,254. The envelop resistance at the moment is located at 22,692.Both RSI and Stochastic are reversing downward.

So I guess winter comes late for HSI and Chinese New Year does not look so good there.