Hang Seng is testing upper falling trendline following a strong rebound from 18K. If rejected and Hang Seng drops back below the 200 daily Moving Average a new low should be expected.
Daily RSI is key; will it be rejected at 60 or breaking above.
An Index close above the trendline and RSI close above 60 threshold could fuel a rally above 20K to resistnace at around 20,782. However, the declining 100 daily Moving Average and the Cloud area around 20K will provide resistance that can limit the upside.
Medium-term weekly chart Hang Seng is forming a falling wedge like corrective pattern.
Weekly RSI is bullish indicating likely bullish break out of the wedge pattern. If that scenario plays out there is upside potential to around 25K.
A bearish break out is likely to send the Index to test Q4 2022 lows.