Hong Kong - Hang Seng (HASE.NDX)

Short term

Hong Kong - Hang Seng is in a falling trend channel in the short term. Falling trends indicate that the market experiences negative development and falling buy interest among investors. The index has support at points 17100 and resistance at points 20000. The short term momentum of the index is strongly negative, with RSI below 30. This indicates increasing pessimism among investors and further decline for Hong Kong - Hang Seng. However, particularly in big stocks, low RSI may be a sign that the stock is oversold and that there is a chance for a reaction upwards. The RSI curve shows a falling trend, which supports the negative trend. The index is overall assessed as technically negative for the short term.

Recommendation one to six weeks: Negative

Medium term

Hong Kong - Hang Seng is in a rising trend channel in the medium long term. This shows that investors over time have bought the index at higher prices and indicates good development for the market. The index has broken a support level and given a negative signal for the long term trading range. The index has broken down through support at points 19600. This predicts a further decline. Volume has previously been high at price tops and low at price bottoms. This strengthens the trend. RSI below 30 shows that the momentum of the index is strongly negative in the short term. Investor have steadily reduced the price to sell the index, which indicates increasing pessimism and continued falling prices. However, particularly in big stocks, low RSI may be a sign that the stock is oversold and that there is a chance for a reaction upwards. The RSI curve shows a falling trend, which is an early signal of a possible trend reversal downwards for the price as well. The index is overall assessed as technically slightly negative for the medium long term.

Recommendation one to six months: Weak Negative

Long term

Hong Kong - Hang Seng is in a falling trend channel in the long term. This signals increasing pessimism among investors and indicates further decline for Hong Kong - Hang Seng. The index is moving within a rectangle formation between support at 15051 and resistance at 23165. A decisive break through one of these levels indicates the new direction for the index. The index has marginally broken down through support at points 19400. An established break predicts a further decline. Volume has previously been high at price tops and low at price bottoms. This weakens the falling trend and could be an early signal of a coming trend break. Trading volume has increased substantially lately, which may be because of fundamental news. The index is overall assessed as technically negative for the long term.

Recommendation one to six quarters: Negative