HSI did not go retrace further this week but instead resumed its bull trend with a stronger trading volume. Week high was 22696 and final close was at 22517.
As mentioned, if last week’s high (22273) were broken up, the next target would be at around 23000. Now there is still some few hundred points space a be way. From the south side, the first support will be around 22300 (previous two weeks’ high) and around 21500 would be very important support zone for the current upward trend.
As the index has now stood above all major moving averages in weekly chart again, it has a higher probability to go up further. Optimistic target will be at point c’ (around 26000). If the upper resistance trend line can be broken up (around 23100), we can be more confident to expect this to happen.
Outlook for next week
Bullish with some pullback first. Followings are the supports and resistances
22300 – Previous 2 weeks high
21500 – Separation line between bull and bear
22700 – Week high
23100 – Downward trend line since Feb 2013