Technical Pulse: Nasdaq Golden Dragon China Index (Current Price: US$7252.775) March 2, 2023 351

 

 

Nasdaq Golden Dragon China Index (NASDAQ: HXC) Potential continuation of the bearish momentum to retest support zone 1 at US$6,500-6,750 and subsequently support zone 2 at US$6,000-6,250.

 

  1. The price has been trading in a downtrend channel recently after breaking down of a bearish heads and shoulders pattern as well as a rising wedge, which provides a bearish signal.
  2. The price could continue to trade lower to retest the first support zone at US$6,500-6,750, which was a previous range support during the consolidation period from December 2022 to January 2023, that is also confluent with a 38.2% Fibonacci retracement level. The Fibonacci retracement levels are calculated using a swing high of US$8,320.479 and swing low of US$4,113.845.
  3. The price could subsequently head lower to retest the second support zone at US$6,000-6,250, which coincides with a previous resistance in mid- to end- November 2022, as well as a 50% Fibonacci retracement level.

 

 

CHART LEGEND

 

Red box = Resistance zone

Green box = Support zone

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About the author

Profile photo of Zane Aw

Zane Aw
Technical Analyst
PSR

I analyze the stock market and conduct technical analysis to provide investment recommendations. I look forward to having a conversation with you in our in-house seminars and presentations to identify good risk-reward trading strategies together. I graduated from Nanyang Technological University with a Bachelor of Accountancy (Honours).

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