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Chart of a day: Hang Seng’s destiny dims

Friday’s Mid-Autumn Festival holiday competence give a Hang Seng Index futures agreement time to recover a composure. The week started badly, following on from Wall Street’s sell-off and reversing all of a prior week’s rally. While a tip of a weekly cloud competence yield some support, as should relocating averages, a risk of a distant deeper dump contingency be considered. The reason is that this month’s cost movement competence be an prolongation by 50 per cent retracement resistance, a tweezers tip opposite Fibonacci insurgency we had targeted given early June. This would finish call C of an A, B, C-type visual convene that started in February. Note also how a cloud of 26 weeks ago capped a lagging line.

Nicole Elliott is a technical analyst