Unfortunately, the one-day sharp fall took place on a Friday, taking the STI to below its breakout level of 3,200, which is likely to negate, or at the very least place the upside objective of 3,345 in cold storage for some time. End-of-week levels are important because these are prices investors are comfortable spending the weekend with. Ending the week at a low is negative. For support, we may need to look to the 200-day moving average, currently at 3,132, which may hold if we’re lucky.
The Hang Seng Index ended fared worse, falling 969 points week-on-week, ending at 24,080 on Nov 26. Since the HSI’s rebound high of 25,713 on Nov 16, the index has lost 1,633 points or 6.3%. The 50-day moving average (currently at 25,026) is likely to act at as a resistance line. With the October low of 24,763 breached, the twice tested 23,900 could provide support as short term oversold readings trigger a rebound sometime in early Dec.
