Protests and weakness in global markets weighed on the Hang Seng Composite ($HSI) in September as the index fell to its prior resistance zone. The index stabilized in October and got a nice bounce on Wednesday. This is an interesting area because it also represents a 50-62% retracement of the prior advance. If the Hang Seng is going to reverse, this is as good a place as any. The Percentage Price Oscillator (PPO) is turning up from oversold levels and a break above the early October high would be quite bullish.
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About the author:
Arthur Hill, CMT, is the Chief Technical Strategist at TrendInvestorPro.com. Focusing predominantly on US equities and ETFs, his systematic approach of identifying trend, finding signals within the trend, and setting key price levels has made him an esteemed market technician. Arthur has written articles for numerous financial publications including Barrons and Stocks & Commodities Magazine. In addition to his Chartered Market Technician (CMT) designation, he holds an MBA from the Cass Business School at City University in London.
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