Recommendation for Hang Seng Index:Sell
Sell Stop : Below 28300
Stop Loss : Above 31300
RSI : Sell
MACD : SellMA(200) : Neutral
Fractals : Neutral
Parabolic SAR : Sell
Bollinger Bands : Neutral
Chart Analysis
On the daily timeframe, HK50: D1 broke down the uptrend support line. The index has formed a "Head and Shoulders" chart pattern. Before opening a position, the quotes should break down the “neck” line of this pattern. A number of technical analysis indicators formed signals for a further drop. We do not exclude a bearish move if HK50: D1 falls below the last lower fractal: 28300. This level can be used as an entry point. We can place a stop loss above the maximum since June 2018, the last two upper fractals, the upper Bollinger line and the Parabolic signal: 31300. After opening a pending order, move can the stop loss following the Bollinger and Parabolic signals to the next fractal maximum. Thus, we change the potential profit/loss ratio in our favor. After the transaction, the most risk-averse traders can switch to the four-hour chart and set a stop loss, moving it in the direction of the bias. If the price meets the stop loss (31300) without activating the order (28300), it is recommended to delete the order: the market sustains internal changes that have not been taken into account.