Technical Update - Hang Seng Index bounces strongly but can it continue?
Kim Cramer Larsson
Technical Analyst, Saxo Bank Group
After breaking support at 19,515 the Hang Seng Index jumped Friday back above in a strong rebound If it closes above 20,284 it has short term reversed the down trend and is likely to test the 55 and 100 SMA’s and potentially also the medium term black falling trend line.
There is divergence on RSI indicating that scenario could play out but I believe the upside potential is limited and down trend will soon resume. A down trend that is likely to test the March lows around 18,235.
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