The HSI on 16th Apr was gap open higher from previous day closed at 15675 to Open at 15921 and higher to 15985. Then start to move downward as low as 15510, just closed at 15581.
From the diagram, we can check out our checklist:
What we think on HSI on 16th April
From our checklist:
1) Form:M shape reversal pattern E
2) Fib L.: Reach 1.618 level of 13979 - 11524 = 15622 [1.618 Strong resistance level]
3) Candlestick: Dark Cloud Cover (The large real body penetrate previous candle, the more powerful the signal + high volume at the end of the day when it occurs at an important resistance area)
4) Trendline: Break the upper trendline
5) 4-9 MA: NOT yet Crossover
6) Stochastics: close 100 around D%92.268% K% 93.959 currently - OverBuy [Neg Div and 2 Top]
7) CCI: 141.3 down from 145.4 [over 100 is over buy zone]
8) MACD: Still in strong momentum(+) & NO crossover exist [ - sentiment or Crossover]
9) BB:Break upper band [16096,14352.81,12609]
10) Volume:High
11) RSI: from 74 to 71.8 [over 70 strong overbuy level]
Now only 2 criteria are not met yet. Therefore, we can make a short call at the highest price SC16000.
