Hang Seng Market Overview for 08-13-08
Posted by Book Eater
Hang Seng Market Overview:
True Colors Shown: Hang Seng Breaks Down
Hang Seng Index gapped down roughly 350 points at the open following the dismal GDP of Japan as well as the negative sentiment following Wall Street’s 130+ point loss yesterday. The whole day was another see-saw but the breakdown was never violated. Before lunch, Hang Seng tried to stage a rally, but was quickly sold down by the market when it opened in the first few minutes, finally succumbing the fight to the bears. As can be clearly seen from the intraday chart, Hang Seng rallied to a clear 21,700 resistance and was sold all the way down, closing at 21,293.32, roughly the same as where it opened which is down 347.57 points.
Recommendation: Avoid trading HK stocks unless you are looking to short. Observe until a retest of a short term support at 21,000 convincingly bounces before looking to go long. Short any rally to resistance (21,700) since the trading box has already been violated.