$HSI Hang Seng Weekly chart head and shouldersThe $HSI Hang Seng weekly chart is showing a pretty clear h&s likely pushing it to the yellow bottom trendline
HSI1! trade ideas
HSI UpdateAs you can see, the Hanger hit my red arrow target last night, and I'm expecting a small bounce from this oversold condition. If it bounces then so will futures, which means a gap up tomorrow.
Not feeling terribly bearish right now, and this bounce isn't gonna be enough to make me bullish either.
Bear Market Has Come...I concluded 8 crucial factors to determine the direction of the HK stock markets:
1. Tension of US-China Trade War: Negative
2. Inverted Yield Curve: Negative (Recession Worry)
3. Political Environment and Sentiment: Negative
4. Fed’s Dovish Tone: Positive
5. Leading Economic Data: Negative
6. Companys’ Earnings: Neutral to Negative
7. Liquidity and Fund Flows: Negative
8. RMB Depreciation: Negative
Trading Plan: Sell on every bounce until we see panic selling at heavily oversold level. Second wave of correction will happen on coming weeks or months. Be prepare!
HKEX:HSI1!
HS1 WHipsawThe Chinese government kills a couple thousand people every year, but apparent a couple dozen deaths from a cold is a big deal over there.
The market needed a reason to sell off, so now we have news attached to a selloff from an overbought condition.
Expecting a whipsaw next week, but maybe it just goes straight down, who knows?
Hang Seng Index - Bullish and Uptrend but looks heavy.Daily chart :-
+HSI is way above all key EMA20, EMA50 and EMA200 - BULLISH.
+Higher High and Higher Low intact - Uptrend
+EMA50 is about to cross above EMA200 - Uptrend.
! BUT Higher Low spotted on momentum indicator - BEARISH DIVERGENCE)
! Dark Cloud Cover formation formed at Channel Resistance.
! HSI move up with weaker volume.
Bull is getting weak and may take a break.
opportunity to swing short if price breaks and stay below 28200
Next support 27800.
Hang Seng WeaknessI kinda blew the call Friday afternoon because I wasn't paying attention to China, and they pumped the crap out of futures Sunday. Pumped ES1 so much that when the Euros sold it, MDI went oversold but the index future was still up 9 pts at open.
Lesson learned.
Anyways, I bought MCHI calls today, and when I noticed this was overbought, I flipped them in the afternoon. Glad I did.
HS: Stay Neutral and Wait for Better Entry pointsHang Seng is probably going to go down for a wave 2 of 3. However, I don't see any good entry points for an outright trade. Thus, selling of a small number of call options (relative to your account size) is probably a better idea if you have to take a trade.
The recommendation is to stay neutral and wait for better entry point though.
HSI Have Best Advance in Over a Month on Trade OptimismHK stock markets rallied on Friday after Trump said China and the US reached the first phase of a substantial trade deal that delays tariff hikes that were set to kick in next week. We saw strong support for HSI futures near 25600 level as market was optimistic on a partial US-China trade deal and the new QE of the Fed. When price broke major resistance at 26200, momentum gained and short covering orders pushed the price back to 26600 level.
Recovery Rally For HSIHSI is likely to gap higher today amid delay of extra tariffs on Chinese goods. President Donald Trump said he was postponing the imposition of 5% extra tariffs on Chinese goods by two weeks, a move that delays the next escalation of the trade war and brightens the backdrop for upcoming trade negotiations.
“At the request of the Vice Premier of China, Liu He, and due to the fact that the People’s Republic of China will be celebrating their 70th Anniversary on October 1st, we have agreed, as a gesture of good will, to move the increased Tariffs on 250 Billion Dollars worth of goods (25% to 30%), from October 1st to October 15th,” Trump wrote on Twitter on Wednesday U.S. time.
S&P 500 futures climbed 0.5% and the offshore yuan strengthened 0.3% against the dollar. The yen fell.
IG HS50 gaps higher to 27464 session high... I guess 27500 upside target is likely to reach today, let's see...
-DevilTrader168
