HSI Due for BreakoutPublished On: 5 Apr 2021, 8:00 AM | Lester Chua, Dealer
- Taking a look at the Hang Seng Index, we can see that price closed last week at the top of an uptrend channel, meeting the resistance formed with the downwards trendline.
- In the coming week, the HSI is poised to breakout of the channel, with a higher likelihood to break upwards, towards the first resistance level (78.6% Fibonacci retracement – first red arrow).
- From there, if price is to close above the Fib level, we can then expect an even stronger move upwards, towards the high at 31,000 (second red arrow).
- If, however, price is not able to break above the first resistance level, we can then expect price to swing strongly downwards towards the 26,000 support level (38.2% Fibonacci retracement – green arrow) before further consolidation ahead.
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