Technical Update - Hang Seng Index in a downtrend that could accelerate in coming days
Kim Cramer Larsson
Technical Analyst, Saxo Bank
Hang Seng is in a confirmed downtrend after br4eaking bearish out of rising wedge like formation i.e. loser lows, lower highs and RSI broken below 40 threshold and also in a down trend. Key support at around 19,890. A close below that support May lows are to be tested.
To reverse the downtrend a close above 21,125 is needed. If that scenario plays out it is more like the picture will be neutral i.e. Hang Seng in a sideways range.
On the weekly chart Hang Seng is trading in wide falling channel. If RSI closes the week below 40 and below its rising trendline May lows are very likely to be tested possibly even March lows at around 18,249
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