The HSI could break out of its symmetrical triangle from above
Technically, the Hang Seng Index (HSI) appears to be consolidating in a symmetrical triangle for several months. Given the stimulus measures in the Chinese economy, it would not be surprising if the HSI broke out of the top of this chart pattern, which would signal the start of a major bullish reversal. The bottom outlook would turn bullish again and the first resistance to watch would be the February high at 25,240 points and then the H1 2021 low at 27,500 points.
Conversely, an exit from the bottom of the triangle would be a bad omen for the HSI. A continuation of the underlying downtrend would be expected and the first target would be the year’s low at around 18,130 points.
Entrance: Purchase above 22,000 points
Stop: 21,000 points
Objective: 25,240, then 27,500 points
Risk/reward ratio: >3
Follow the evolution of the HSI price with IG.