Tag: Hang Seng Index

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China: Shanghai & Hang Seng

China’s Shanghai Composite index retreated below resistance at 2300, from the 2010 low. Expect a down-swing to test the lower trend channel at 2000*. 63-day Twiggs Momentum oscillating below zero indicates a strong primary down-trend.

Shanghai Composite Index

* Target calculation: 2150 – ( 2300 – 2150 ) = 2000

Hong Kong’s Hang Seng index is more bullish, but retreat below the new support level at 20000 would indicate hesitancy. And breach of the rising (green) trendline would warn of a bull trap — as would respect of the zero line (from below) by 63-day Twiggs Momentum.

Hang Seng Index

* Target calculation: 20 + ( 20 – 18 ) = 22

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Asia: Shanghai weakens but India displays support

China’s Shanghai Composite index has been edging lower since breaking support at 2400. 63-Day Twiggs Momentum, declining below zero, confirms a primary down-trend. Expect a test of the 2008 low at 1700 in the months ahead.

Shanghai Composite Index

* Target calculation: 2400 – ( 3200 – 2400 ) = 1600

India’s Sensex Index broke support at 16000 but then retraced to test the new resistance level. An encouraging bullish divergence on 13-week Twiggs Money Flow shows buying pressure. Breakout above 16000 would indicate a rally to 18000. Respect of resistance, however, would confirm the down-swing to 14000*.


BSE Sensex Index

* Target calculation: 16 – ( 18 – 16 ) = 14

Singapore’s Straits Times Index follows a similar course to India. Recovery above 2900 would signal a (primary trend) reversal.

Singapore Straits Times Index


Hong Kong’s Hang Seng Index faces similar resistance at 20000. Respect would indicate another test of 16000, while breakout would signal a reversal.

Hong Kong Hang Seng Index


The weekly chart shows Japan’s Nikkei 225 index on a similar path to Shanghai — headed for a test of its 2008/9 lows. Failure of medium-term support at 8200 would strengthen the signal. 13-Week Twiggs Money Flow below zero warns of selling pressure.

Nikkei 225 Index

* Target calculation: 9 – ( 11 – 9 ) = 7

South Korea’s Seoul Composite index is testing resistance at 1920 but bearish divergence on 13-week Twiggs Money Flow warns of selling pressure. Reversal below 1800 would suggest another test of support at 1650. Upward breakout is unlikely but would indicate a (primary trend) reversal.

Seoul Composite Index

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Shanghai breaks primary support

The Shanghai Composite index broke primary support at 2300 Monday, signaling a decline to 2100*. Follow-through on Tuesday would strengthen the signal. The sharp fall on 13-week Twiggs Money Flow warns of strong selling pressure.

Shanghai Composite Index

* Target calculation: 2300 – ( 2500 – 2300 ) = 2100

Hong Kong’s Hang Seng Index held above 18500 Monday, but another test of medium-term support at 17500 is likely.

Hang Seng Index

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Asia rallies

Asia rallied Monday on encouraging signs from Europe, with the Nikkei 225 testing 8300, the Seoul Composite (KOSPI) jumping to 1815, and Hang Seng above 18000. But a look at the quarterly chart of the Nikkei shows a long-term, bearish divergence on 63-day Twiggs Momentum, while the index is headed for a test of key support at 7000/7500. Unless we see a break above the descending trendline, the trend remains downward.

Nikkei 225 Index

South Korea’s Seoul Composite index is headed for another test of 1650 according to the weekly chart. 63-Day Twiggs Momentum oscillating well below zero indicates a strong primary down-trend. Failure of support would offer a target of 1350*.

KOSPI Index

* Target calculation: 1650 – ( 1950 – 1650 ) = 1350

Hong Kong’s Hang Seng index recovered above 18000 Monday but the long-term trend remains downward. Steeply descending 63-day Twiggs Momentum warns of a strong primary down-trend.

Hang Seng Index

* Target calculation: 16 – ( 20 – 16 ) = 12

The Shanghai Composite index did not share the enthusiasm of other Asian markets, testing support at 2375.  Reversal of 13-week Twiggs Money Flow below zero warns of rising selling pressure. Failure of support at 2300 would offer a target of 2050*.

Shanghai Composite Index

* Target calculation: 2300 – ( 2550 – 2300 ) = 2050

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China and Hong Kong

Hong Kong’s Hang Seng Index is testing medium-term support at 18000; breach would signal another test of 16000*. 13-Week Twiggs Money Flow below zero warns of rising selling pressure.

Hang Seng Index

* Target calculation: 16 – ( 20 − 16 ) = 12

The Shanghai Composite is testing medium-term support at 2400. Failure of primary support at 2300 would offer a medium-term target of 2000*. The long-term trend is edging lower in a controlled descent, so conventional target calculations do not apply. Recovery above 2600 is less likely, but would signal another test of the descending trendline.

Shanghai Composite Index

* Target calculation: 2300 – ( 2600 − 2300 ) = 2000

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Asian markets

The Shanghai Composite Index reflects China’s controlled slow-down, edging lower with intermittent bear market rallies. The index is currently testing the descending (secondary) trendline at 2500. Penetration would offer a target of 2650 but would not indicate that the primary down-trend is over. Failure of support at 2300/2350 remains more likely and would offer a target of 2000.

Shanghai Composite Index

* Target calculation: 2300 – ( 2600 – 2300 ) = 2000

HongKong’s Hang Seng Index is headed for a test of the (primary) descending trendline at 21000; breakout above 20000 would confirm. The primary trend remains downward, however, and respect of the trendline would suggest another test of 16000.

Hang Seng Index

Japan’s Nikkei 225 Index is ranging between 8400 and 9100. Breakout would indicate future trend direction.

Nikkei 225 Index

* Target calculation: 8400 – ( 9000 – 8400 ) = 7800

South Korea’s Seoul Composite Index continues to reflect buying pressure on 13-week Twiggs Money Flow. Follow-through above recent highs would indicate a strong bear rally, but the primary trend remains downward.

Seoul Composite Index

* Target calculation: 1900 + ( 1900 – 1800 ) = 2000

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Hong Kong and China

HongKong’s Hang Seng Index broke its secondary descending trendline at 19000, indicating a test of the primary trendline at 21000/22000.

Hang Seng Index

* Target calculation: 19 + ( 19 – 16 ) = 22

The Shanghai Composite Index recovered above support at 2350. Breakout above its secondary trendline would also test the primary trendline around 2900.

Shanghai Composite Index

Dow Jones HongKong Index shows retracement to test short-term support on Monday. Respect of the rising trendline would signal trend strength, while failure of support at 360 would signal another decline.

Dow Jones HongKong Index

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China & HongKong retreat

Dow Jones Shanghai Index fell sharply on Tuesday, signaling a test of the lower trend channel. Declining 63-Day Twiggs Momentum below zero indicates a strong primary down-trend.

Dow Jones Shanghai Index

The Hang Seng Index retreated to 18000 Tuesday. Respect of both resistance at 19000 and the descending trendline warn of another test of primary support at 16000. Declining 13-week Twiggs Money Flow indicates long-term selling pressure. Failure of primary support would offer a target of 13000*.

Hang Seng Index

* Target calculation: 16 – ( 19 – 16 ) = 13

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China and South Korea

The Shanghai Composite Index is testing support at the 2010 low of 2350. 13-Week Twiggs Money Flow below zero warns of selling pressure. Failure of support is likely and would offer a long-term target of 1800*.

Shanghai Composite Index

* Target calculation: 2400 – ( 3000 – 2400 ) = 1800

Hang Seng Index rallied off support at 16000 and 13-week Twiggs Money Flow above zero indicates short/medium-term buying pressure. Expect a rally to test 19000, but the primary trend remains down and respect of resistance would indicate another test of 16000*.

Hang Seng Index

* Target calculation: 19 – ( 22 – 19 ) = 16

South Korea’s Seoul Composite Index is headed for a test of its upper trend channel. Bullish divergence on 13-week Twiggs Money Flow suggests a bear market rally. Expect another test of 1900. But the primary trend remains down and failure of support at 1650 would warn of a decline to 1500*.

Seoul Composite Index

* Target calculation: 1700 – ( 1900 – 1700 ) = 1500

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HK and China weaken

The Hang Seng index is falling steeply, with 13-week Twiggs Money Flow below zero warning of selling pressure. Target for the current-down-swing is 16000*.

Hang Seng Index

* Target calculation: 19 – ( 22 – 19 ) = 16

The Shanghai Exchange is closed for Chung Yeung Festival, but the Shanghai Composite Index was testing support at 2350 on Friday. Failure of support would offer a long-term target of 1800*.

Shanghai Composite Index

* Target calculation: 2400 – ( 3000 – 2400 ) = 1800

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