HSI - Technical Analysis by DB

Last Tuesday’s breakdown below the lower confine of a congestion zone changes the short-term neutral bias to a negative one. The HSI thereby closed below the intermediate-term uptrend line as well. It would take a decisive recapture of the 14,200/14,300 area to negate the negative outlook and identify this recent drop as a false break and bear trap. Minor resistance is seen at 13,675. Next potential downside targets are 11,815 and 10,676. Investors may await a close above 15,781 before considering taking or adding to long-positions. Short-term traders may sell rallies as long as prices remain below 14,300 on a closing basis.