Tuesday, 17 February 2009

Hang Seng Index - breakout from triangular pattern

The Hang Seng Index (HSI) dropped by almost four percent in Tuesday’s session and this was closely matched by a similar fall in Shanghai. As suggested here recently there are bullish indications emerging from the Shanghai Exchange (SSEC) and undoubtedly there are institutional traders that will see pullbacks in this geographical sector as buying opportunities.
However the breakdown from the triangular pattern seen on the Hang Seng chart above, as well as another weak session on the Mumbai exchange in India, suggests that it caution with regard to venturing into emerging markets is still the prudent course.

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