European stocks lower

HK50 Technical Analysis Report 30 November, 2020

  • HK50 reversed from major resistance level 26800.00
  • Likely to fall to 26000.00

HK50 index under bearish pressure after the price reversed down with the daily Japanese candlesticks reversal pattern Shooting Star from the major resistance level 26800.00 (which has been reversing the index from the end of February) – standing close to the upper daily Bollinger Band. The downward reversal from the resistance level 26800.00 gave the start to the active short-term corrective wave (iv) – which belongs to wave 5 from the start of November.

Given the overriding strength of the resistance level 26800.00 – HK50 is likely fall further toward the next support level 26000.00 (low of the previous minor retracement 4 from the start of November and the target price calculated for the completion of the active corrective wave (iv).

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