Here's what it looks like now:
Yesterday's session, HSI hit a high of 21935, close enough. Although it may inch higher towards 22000, expect consolidation here below the downtrendline connecting the two previous highs. Good support is at the bottom of the range around 20600.
More upside?
Look out for an eventual breakout above the line in the weeks/months ahead. This is due to the correlation HSI tends to have with Shanghai index, and the bullish medium-term outlook for Shanghai. Also, keep in mind the possibility that the decline from the highs was in three waves. Hence, when it does break out, we can expect a retest of 23100 and possibly new highs.
I'll post again as the price-action unfolds. All the best!
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