I expect a strong rebound of the HSI on its current support level to complete its rectangle formation. In fact, signs of reversal are showing up, with a morning start 3-candle pattern formed on the 5th Dec. 2019.
Due to cheaper valuation and extreme sell-off of HK market due to recent protests and US passed bill, as well as increasingly positive sentiment by institutional and retail investors, I expected an out performance of HK market by the half of 2020. In fact, HSI is trading nearly flat YTD at very low levels of PE and volatility (VHSI). As a result I expect a breakout of the resistance level after HSI rebound. Therefore, the index could face some turbulence while conducting it's resistance breakout, which, in my opinion, won't stop it from reaching the 30K levels.
Due to cheaper valuation and extreme sell-off of HK market due to recent protests and US passed bill, as well as increasingly positive sentiment by institutional and retail investors, I expected an out performance of HK market by the half of 2020. In fact, HSI is trading nearly flat YTD at very low levels of PE and volatility (VHSI). As a result I expect a breakout of the resistance level after HSI rebound. Therefore, the index could face some turbulence while conducting it's resistance breakout, which, in my opinion, won't stop it from reaching the 30K levels.