HONG KONG 50 BREAKS ABOVE THE RESISTANCE TRIANGLE LINE
During the Asian trading session on Tuesday, Hong Kong 50 Index breaks above the resistance triangle line, beginning from June 21st. Yesterday the price impulse broke above the resistance line at level of $25800 and in the next few hours on a four-hour chart, tested the resistance line above and confirmed it as a support line. Tomorrow investors will observe with interest in which direction the price will continue to develop and whether it will return to the triangle. This has dismissed the bearish case, but it has not yet confirmed a bullis reversal.
Market experts believe that a bullish reversal will be confirmed upon a break above the $26000 zone. This will confirm a forthcoming higher high on the 4-hour chart and may pave the way towards the $26680 zones, or the higher territory around $27740 and $28180. If neither area can halt the advance, we could experience extensions towards the $29357 hurdle, marked as resistance by the beginning of June.
On the downside, a dip below $25600 is the move to assess whether the bears have gained the upper hand again. This would confirm a forthcoming lower low on both the 4-hour and daily chart and may open the path to test the $24726 zone again. If that area does not hold either, then the fall could extend to the $24000 territories.
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Market experts believe that a bullish reversal will be confirmed upon a break above the $26000 zone. This will confirm a forthcoming higher high on the 4-hour chart and may pave the way towards the $26680 zones, or the higher territory around $27740 and $28180. If neither area can halt the advance, we could experience extensions towards the $29357 hurdle, marked as resistance by the beginning of June.
On the downside, a dip below $25600 is the move to assess whether the bears have gained the upper hand again. This would confirm a forthcoming lower low on both the 4-hour and daily chart and may open the path to test the $24726 zone again. If that area does not hold either, then the fall could extend to the $24000 territories.
Risk Disclosure: Trading Foreign Exchange (Forex) and Contracts of Difference (CFD's) carry a high-risk level. By registering and signing up, any client affirms their understanding of their own personal accountability for all transactions performed within their account and recognizes the risks associated with trading on such markets and such sites. Furthermore, one understands that the company carries zero influence over transactions, needs, and trading signals. Therefore, it cannot be held liable nor guarantee any profits or losses.