Hang Seng Index Chart Analysis
- Taking a look at the Hong Kong Index, we can see that it has been extremely volatile for the past 2 weeks, likely due to China’s intention to impose additional national security law on Hong Kong.
- Price has formed a double bottom formation close to the 78.6% Fibonacci retracement level, creating a significant support level. The triangle formation suggests that price will likely breakout in either direction over the coming weeks.
- If price were to open or close below the bottom trendline as well as the 78.6% Fib level, we can expect price to move downwards to the 21000 psychological level indicated by the bottom green arrow, as the next bearish price target.
- If however, price respects the 78.6% Fib support level and closes above the trendline, we can then look towards the 50% Fib level or near the top trendline as indicated by the red arrow, as the next bullish price target.
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