Hang Seng - Heading Towards 24990 - 25500

Hang Seng (CMP: 23881.2) - The chart shows the bullish outlook for short to medium term perspective.

Multiyear triangle breakout has been witnessed on weekly chart which has taken the index into new medium term bullish territory.

In addition to this “Inverted Head & Shoulder pattern” breakout has been witnessed which is a significant bullish reversal pattern. This pattern’s target is placed around 28000 levels which is 100% level of head. Minimum 60% move we rely in the target side which approximately comes around 24990 – 25500. This level is also confluence with the earlier swing witnessed on November,2010.

Price is forming higher top higher bottom formations on weekly charts; this adds strength to our bullish stance.  Index is trading above key moving averages on the weekly chart. 50 Week EMA is placed at 22360.

Support level is placed at 22360 – 21465. The weekly oscillators are placed in positive mode.

Conclusion: The index is heading toward the levels of 24990 – 25500. Key support level is 21465.