Today we take a look at a popular Chinese index the Hang Seng (#HSI). Our analysts have been trading this index for the past year. The instrument has proven to yield good profits and good in terms of managing risk associated with it. Since the Chinese government had cracked down on companies with regulations. Since then the #HSI index has been bearish for past 4-6months . However, we have seen price find support at a strong level thus showing signs of a giving bullish reversal formation.
If you take a look at both the daily and H4 charts you may see how level 23753.0 acts as our major support .After finding support price moved bullish. It then found resistance at level 26280.8 before moving bearish to find second support at price level 24445.0 .Since then price has moved bullish and now trades in time of writing above level 25590.0.
Our analyst at FXSits believe that if the hang seng continues to move bullish and breaks past the resistance level. Then we may see price form new high and our next resistance target level will be 27593.3 .But if price finds resistance and moves bearish past the support. Possibilities are we may witness bearish price action for a long time in the next market sessions .
To add the Chinese economy has risen 3.4% this year as compared to last year. This means the economy is doing good and the index is expected to rise in the future. As the economy recovers from the Covid19 situation chances are we may see a boom .
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