HSI bullish breakout
Introduction: An amateur investor that is interested to expand my knowledge & improve my analysis. Methodology involves the use of longer term technical analysis to guide my macro view on markets. Please feel free to comment & critique. Looking forward to learn from everyone :D
Trend Analysis - HSI made a bullish breakout on 26 May 21. Looking to test the resistance at 29475 (Fibonacci retracement 23.6%). Short term support trend-line indicated in dark blue. First breakout confirmation from falling wedge pattern (started 17 Feb 21). Target price for current pattern is 32000 (using the 2 black lines to measure falling wedge target price). Second confirmation will be a break above 29475.
Fundamental Analysis - Bullish on Chinese equity markets outlook particularly cyclical sectors (financials, consumer cyclicals) & valuations for technology are becoming increasingly attractive. Portfolio allocation should ideally have exposure to themes involving China 5-year plan, disruptive technological themes (fintech, green-tech, robotics etc.) & ESG. View for Chinese equities in year of 2021 is overall bullish. Potential headwinds include China's credit market stability, regulatory risks & lastly credit tightening.
Trend Analysis - HSI made a bullish breakout on 26 May 21. Looking to test the resistance at 29475 (Fibonacci retracement 23.6%). Short term support trend-line indicated in dark blue. First breakout confirmation from falling wedge pattern (started 17 Feb 21). Target price for current pattern is 32000 (using the 2 black lines to measure falling wedge target price). Second confirmation will be a break above 29475.
Fundamental Analysis - Bullish on Chinese equity markets outlook particularly cyclical sectors (financials, consumer cyclicals) & valuations for technology are becoming increasingly attractive. Portfolio allocation should ideally have exposure to themes involving China 5-year plan, disruptive technological themes (fintech, green-tech, robotics etc.) & ESG. View for Chinese equities in year of 2021 is overall bullish. Potential headwinds include China's credit market stability, regulatory risks & lastly credit tightening.
Note
HSI testing resistance level at 29475. Important trading week to determine direction of HSI moving forward.
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The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.