Technical Update - Hang Seng: Rebound seems to fizzle resuming bear trend
Kim Cramer Larsson
Technical Analyst, Saxo Bank Group
Hang Seng jumped Wednesday following worldwide rebound in Equities close to 0.382 retracement of the latest sell-off in September, just below the previous support at 18,235 that was taken out a couple of weeks ago. If Sellers can close the gap created Wednesday lower levels in Hang Seng should be expected.
Hang Seng is trading in a wide falling channel, currently in the lower half. There is no divergence on RSI indicating lower levels. 16,170 – a level going back to 2011 is next key support.
However, if the rebound can continue above 18,250 and RSI moves above its falling trend line a larger correction could be in play
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