Just a few chart dumps from the HK market. First is the Hang Seng Index. Notice how the 21 SMA and by extension the 21 EMA was crossed by a small doji pattern with lots of volume on Tuesday, followed by a massive bullish candle today. Sure, this is Fed speculation, but shows something about sentiment.
Second, a golden opportunity in Zijin Mining, a Chinese gold mining company. Heavily depressed despite gold performance (I don’t know why), it looks primed for a rebound but has failed nearly every time. Though, check that trendline of recent lower bottoms, and if I told you it’s sitting on the 3-month daily sampled lower Bollinger, gun to your head, long or short? The candy is really if you look at the last six days of trading. Three black crows, into a harami, followed by a (massive!) doji and trailed by an inside, bullish candle. In fact, as bullish as it can be while still being inside. Warnings are around 3.68-3.70, but this could be one of the best long trades. Bears, however, could wait for a touch around 3.85-3.90 or an extended consolidation at current levels where significant moving average pressure starts applying for the stock and longer Bollingers could expand to just pull all the support out from underneath the stock.
Finally, if youl want a gamble, why not check out Galaxy Entertainment? Monthly RSI looks strong coming up above 50 even after that precipitous fall two weeks ago, candlesticks are flaring well except for today’s wick, and MA’s are out of the way. How about a top revisit and three-touch break at 22? There are more things, but I’d hold those back until I actually describe the way my MACD-system works. In the meantime, check for yourself and see how much money you want to allocate to play dice, if any. All HK-listed gambling stocks show the same tendency, but Galaxy is more volatile and the move is less mature, meaning there’s more money to catch.
DISCLAIMER: I have positions long in the companies mentioned above, and short on the index, being net long on the positions discussed. All positions have been held for 5 or more trading days.
In spite of these technicals, my predominant view is net short over the longer term, but this could be a rather revitalizing little jump and a healthy addition to any account to catch a few correction trades upwards.