Howdy, and happy new year. The HSI index has been trading bearish for some time now. This has been the case since the Chinese government cracked down big tech companies. The hang seng index has been a bear market for almost 10 months. The the index found support at level 22633.4 before price soared back upward. We last reported on the pair last year November. Here is a link to that analysis . https://fxsits.com/hang-seng-price-action-looks-promissing-for-buyers/ .
Today price trades above the resistance level 22727.0. This is where we see price struggle to break past however still manages to move bullish. We think that if the HSI index trades above the resistance level, then we could see the level 24375.6 being tested. However, if price fails to stay above the resistance level, then we may see price move back to its major support level at 22633.4
Our analysts believe that that the hang seng will appreciate in the upcoming months. This is due to the Chinese government relaxing it policies on companies. Attached are both the H4 and daily charts to help understand more about the analysis and insights on how to trade the index.
NB: Warning Before deciding to participate in the Forex market, you should carefully consider your investment objectives, level of experience and risk appetite. Most importantly, do not invest money you cannot afford to lose. Consider position sizing before entering a trade and manage your risk accordingly. Please read risk warning before deciding to trade the markets.