Sunday, June 27, 2010

Hang Seng Index: Trendline Watch

A month ago, on the HSI Trendline Watch, i posted the below chart, suggesting a move down to 18800, before a bullish reversal to test 19400 initially. "Medium-term, the chart has the potential for a bullish Inverse Head & Shoulders, and looks decently setup for one more wave up."

And this is what has transpired so far, pretty much on target:

Leaving behind its affliations with the US & China, HSI has gone vertical, tacking on a good 10% so far! Currently consolidating just below the 200-day moving average, prices will run into upper channel line resistance on any further moves up, especially around 21700. A sustained break above the upper trendline will take time, but may target the 26000 area.

So, watch out above folks!
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