Hang Seng Update
This is an update to our last piece on the Hang Seng Index dated 19th November ‘21.
ATEC previously pointed out that the Hang Seng Index was at risk of a severe flush were it to break its triangle formation.
Although the index did drop some 6% since breaking the 24,900 level, the lack of downside momentum in recent days has us thinking if this is all there is to the selling/ correction.
Admittedly, the evidence that we see on our technical indicators as of today are not supportive of much more (if any) further downside from here. ATEC has to recognise that the index, being one of the most oversold and worst-performing regional markets year-to-date, might not offer the best rewards for being short. Hence, we humbly bow out of our positions.
Having said that, the index has yet to truly flash any ‘Buy’ signals, hence, we are back on the sidelines awaiting more price information.
Good luck out there.