Technical Pulse: Hang Seng Index June 13, 2017 45

Technical Sell 

Hang Seng Index – Daily timeframe


*Entry Price: 25,688           Stop loss : 26,101         Take profit : 24,657

Current Sentiment: Bearish

Support 1: 25025                 Resistance 1: 26090

Support 2: 24657                  Resistance 2: 26553

The Hang Seng Index is showing sign of exhaustion after a strong run up in price since early 2017. The relative strength index (RSI) has been in an overbought territory, above 70 for a prolonged period since 25/05/17.

There was a strong bearish rejection on 12/06/17 that resulted in the RSI turning down to 58 from the 74 overbought region signals a correction phase next.

The last few times the RSI entered into an overbought region and reverted back down below the 70 overbought region, price corrected significantly shown by the highlighted area.

Expect the same price action to play next for price to test the 25,025 support area followed by 24,657.

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About the author

Profile photo of Jeremy Ng

Jeremy Ng
Research Analyst
Phillip Securities Research Pte Ltd

Jeremy specialises in Technical Analysis and has 10 years of experience in studying price action. His areas of expertise include intermarket analysis on the equities, currencies, commodities and bonds market.

He is also a regular columnist on The Business Times - every Monday ChartPoint column.

He graduated with a Bachelor of Science in Banking and Finance from University of London.

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