Reuters HANG SENG Technical Analysis (By Phil Smith)

Longer term (weekly chart). The MACD still has a good downward signal for the Hang Seng but there are signs of the fast line turning up. As it stands this weekly chart is still bearish but we need to watch that MACD fast line carefully.

We have formed a topping pattern as per the daily market comment. We should watch the US markets carefully as the correlation is high still and the S&P 500 is looking bearish.

Notice how volume has declined as the topping pattern has formed and rose once the pattern was complete. This is how it should be.

As with all the world’s stock markets, the rally since the major turn from the big bear market has been significant and consolidation is the watchword not huge further gains.

We need to watch the S&P 500 very carefully.

See the glossary link above for an explanation of the studies used above.

Reuters Market Technicals

By Phil Smith mailto:technicals@reutersindia.net

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