HK Outlook Oct. 25
Thursday, October 23, 2008 20:35
Don’t be fooled. It was a given for traders that when the Hang Seng market failed to hold its support levels, we would fall further into the abyss. The relief rally was good for only two days. The intraday chart pattern shown below states that the market could fall to 13,600. However, we have even fallen more than that. Thus, a small relief rally occurred later afternoon this Thursday. Traders however should beware. Gap downs especially with fundamental backing (credit crisis looming), should be respected. We are in a bear market. There is a higher percentage for the market to fail. We as traders, live only for the short term gains. We cannot gamble our funds away.
I am sorry for my gloomy outlook but I have to be real and bearish. Yes, a short term relief rally can occur. However, it is dangerous to bet that it will bottom out tomorrow or next week or whenever. Stay out.
Below is the daily chart of Hang Seng. The only support that I can see from the chart is HangSeng at 12,000. We currently closed at 13,760 this Thursday.
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