Hang Seng CE Index Jan contract Forecast for 29th January 2013

Hang Seng CE Index Jan contract Forecast for 29th January 2013
Hang Seng CE Index Jan contract Forecast for 29th January 2013
Hang Seng China Enterprises Future made a new high last week at 12266 but closed lower on the week. This could be an early warning that we are running out of momentum with the stochastic very over bought on weekly and daily charts. We have also broken below the 2 month uptrend line now.

We could see further weakness down to 11922/877 but there is scope for 11778/740. We should see a bounce from here at this stage but if we break lower we could head for the next support at 11477/461.

Resistance at Friday’s high of 12149 but above here we can retest last week’s high at 12250/66 and this could hold the top side again this week. Worth exiting any longs on the approach therefore. If we do push on in today’s session however and break 12250/66 we look for 12300/335 as the next target and then 12474. Above here 12546 closes another gap from Aug 2011.

Leave a Reply

Your email address will not be published. Required fields are marked *