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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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.