Friday 28 November 2008

HSI Technical Analysis by DB

1 comment:

Guanyu said...

HSI Technical Analysis by DB

The HSI has been consolidating the recent sharp thrust upward for about two weeks around the centre line of the daily Bollinger Band. With last week’s decline, the index established another leg down. Prices then managed to stabilize above the lower Bollinger Band and printed a low at 11,814 on Friday. After forming an inside day the index recaptured gap resistance at 12,739 on Tuesday, improving the short-term technicals. Yesterday, prices reached the next hurdle around 13,500/13,600. Key-resistance and next upside objective is seen at 15,318.

Strategy: Short-term aggressive traders may prefer long-positions as long as prices remain above important support at 11,814. Below that level, a switch into short-positions may be pondered. Risk-averse investors with an intermediate-term perspective may await a decisive close above 15,318 before taking or adding to long-positions.