HSI, SiMSCI has to overcome support zones
Hang Seng Index
- Index at past support that is definitely acknowledged by market, visible from price action.
- In 15 minute time frame below, spikes show the struggle between bulls and bears.
- SiMSCI at zone made up of former 52-week lows, lows of 2013 and 2014.
- Psychological value – Short sellers see the potential for this index to go lower, even August and September lows once green zone is overcome. Buyers see a low-risk proposition where stop loss can be placed tightly on just the other side of the zone.
- Bear in mind Straits Times Index is also struggling at 3000 which is a round number of psychological value.
Note: Charts of CFDs here, not the exchange product.
Director, TerraSeeds Market Technician Pte Ltd. Trader, investor. @sohtionghum was picked ‘Top 70 Forex Twitter in 2015’. Operates multiple strategies.
“Dear reader, I do not have a financial license to give advice. I do not know you the reader. Your financial objective and risk tolerance may be different from mine. I am not responsible for any consequence of your action.