Posted by Book Eater
Hang Seng Market Overview:
One day reversal?
HIS opened at 20,956.94, a little lower from where it closed yesterday and fell as much as 350 points to a low of 20,595.59 in intraday trade. However, the decline of oil prices to as much as $106/bbl sent the airline stocks higher in the last hour of the market giving the HSI a gain of 136 points closing at 21,042.46. MACD divergence is still in place. Rally mode is very very near. A good follow through coming from the decline in oil prices will probably send the US markets a lift allowing HK to maintain the bullish mode.
Recommendation: Traders can go long on selective stocks. Many chart patterns are divergent. One of which that I will highlight today is Intime Department Store or 1833 HK.
Intraday Hangseng Chart
Daily Hang Seng Chart:
Stock Picks:
Intime Department Store (1833)
Support: 3.74 (3 day previous low)
Preferred Entry: 4 or below, or breakout of 4.15
Resistance: 4.95