Chart of the day: Hang Seng’s future dims
Friday’s Mid-Autumn Festival holiday might give the Hang Seng Index futures contract time to regain its composure. The week started badly, following on from Wall Street’s sell-off and reversing all of the previous week’s rally. While the top of the weekly cloud might provide some support, as should moving averages, the risk of a far deeper drop must be considered. The reason is that this month’s price action might be an extension through 50 per cent retracement resistance, a tweezers top against Fibonacci resistance we had targeted since early June. This would end wave C of an A, B, C-type corrective rally that started in February. Note also how the cloud of 26 weeks ago capped the lagging line.
Nicole Elliott is a technical analyst