The Hong Kong 50-Cash Index (Hang Seng Index) has staged a recent decline of -11% from its 52-week high of 31,114 printed on 18 February to a swing low 27,500 on 25 March. Thereafter, it staged a minor bounce of 6% to hit a high of 29,170 and traded sideways for the last three weeks.
Two significant positive technical elements have emerged; firstly, the price action of the Index traced out an impending minor potential bullish reversal âInverse Head & Shouldersâ configuration in place since 9 March which indicates a likelihood that the on-going short-term downtrend in place since 18 Feb high of 31,114 may start to reverse to the upside soon.