Thursday, 2 April 2009

Hong Kong stocks revealing a slanting "W" formation

The Hang Seng Index in Hong Kong posted a 7.4% gain in Asian trading on Thursday. It has made a very strong recovery since late last week and, as anticipated found support close to the intersection of two key moving averages - the 20 and 50 day EMA.

The interesting chart configuration which is developing is of a slightly downward slanting W formation which could be pointing to the fact that the tone of the market in coming months could be one of further fits and starts - but with a sideways to downward bias.

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