I think that the intermediate uptrend that ended the huge decline due to troubles in Europe is still very much intact. Using a very simple analysis, the two upleg within this intermediate trend brought the index up 2000 points, and they are then followed by a retracement of about 1100 points.( give a little more slack for the most recent retracement due to the large bearish crowd formed with regards to the weakening US economy) I think such trends and trading ranges changes very slowly, and this would therefore bring the index to at least 22,200. Right now HSI is pulling back after a 1000 points move up from the 31 August low, and i think it should find support at around 20,880.
No comments:
Post a Comment