Hong Kong & China: Soft Landing

A weekly chart of the Hang Seng Index, with a long tail on last week’s candle, indicates respect of the 20000 support level. A 13-week Twiggs Money Flow trough above the zero line indicates buying pressure. Follow-through above 21000 would indicate an advance to 23000*, confirming the primary up-trend.

Hang Seng Index

* Target calculation: 21.5 + ( 21.5 – 20 ) = 23

Dow Jones Shanghai Index respected support at the 2010 low of 275, indicating that a bottom is forming. Recovery of 63-day Twiggs Momentum above zero would signal a primary up-trend. Breakout above resistance at 310 would confirm, offering an initial target of 345*.

Dow Jones Shanghai Index

* Target calculation: 310 + ( 310 – 275 ) = 345