From the end of March, the Hang Seng index is slowly grinding higher, forming higher lows and trading above a short-term tentative upside support line taken from the low of March 25th. However, as we can see on our 4-hour chart, the price is struggling to stay above the 29337 barrier, marked by the high of April 19th. In order to get a bit more comfortable with further upside, we would prefer to wait for a strong move above that barrier first.
If, eventually, the price moves above the 29337 hurdle, this could attract more buyers into the arena. Hang Seng could then rise to the 29572 obstacle, marked by the highs of March 12th and 18th, where the index might stall for a bit. That said, if the buying activity remains the more popular one then, the price may travel further north, possibly aiming for the 29876 level, marked by the highest point of March.
The RSI and the MACD are currently pointing a bit higher. Also, the RSI continues to sit above 50 and the MACD remains above zero and its trigger line. The two oscillators seem to support the idea of a further upmove, as both indicate positive price momentum.
Alternatively, if the index violates the aforementioned upside line and then falls below the 28767 hurdle, marked by the low of April 26th, that could spook the bulls from the field for a bit. Hang Seng might then travel to the low of last week, at 28468, a break of which could clear the path towards the 28186 level, marked by the current lowest point of April.
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