Hong Kong 33 Index: Key Support and Momentum Indicators Signal Potential Reversal
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Fig 1: Hong Kong 33 minor short-term trend as of 20 Jun 2023 (Source: TradingView, click to enlarge chart)
The current drop in price actions is now coming close to a key pull-back support area
The Index is now hovering right above the former descending channel resistance and now turns pull-back support at 19,440 and the 200-day moving average coming in as support at around 19,090.
Also, the 19,440/19,090 support area confluences with 38.2% and 50% Fibonacci retracement of the minor short-term uptrend phase from the 31 May 2023 low to the 16 June 2023 high.
The momentum indicator is also at a parallel/corresponding support
The 4-hour RSI oscillator, a momentum indicator has exited from its overbought area, and it has now reached a corresponding support zone of 42%/36% which may lead to a potential positive reversal in price actions.
19.090 key short-term pivotal support to maintain the minor short-term uptrend phase with intermediate resistances coming in at 20,300 and 20,900.
On the other hand, a break below 19,090 negates the bullish tone to expose the 18,130/17,630 key medium-term support.
