Bullish Outlook for the HSI
- Taking a look at the Hang Seng Index, we can see that price has been in a consolidation for the past month with no clear direction. However, with a cup and handle formation as well as an ascending triangle formation spanning over several months, we are likely to see a breakout into the upside over the following weeks to come.
- If a bullish breakout were to happen, we can expect price to head towards the 28,000 psychological resistance level (red down arrow).
- If however, the breakout is on the downside, we can then expect price to move towards the 50% Fibonacci retracement level (green up arrow) before further consolidation ahead.
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