Technical Update - Hang Seng continue downtrend. May lows in sight
Kim Cramer Larsson
Technical Analyst, Saxo Bank
After a few days of sideways corrective trading Hang Seng has resumed its down trend fast approaching key support at 19,890.
RSI is close to break below its trend line which is likely to further accelerate the sell-off that has hit Hong Kong Equities.
If Hang Seng closes below support at 19,890 lows from May is like to bet tested possibly even March trough.
On the weekly chart it is clear Hang Seng is trading in a medium-term falling channel. If RSI closes below its rising trendline Hang Seng is likely to test March lows at around 18,249
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