On October 5, 2019, we said the following of the Hang Seng Index:
“By all accounts, the failure of the Hang Seng Index to meaningfully exceed the 23,264.43 level indicates that the range of 24,585.53 to 21,616.14 is a lock.”
As seen in the chart below, the Hang Seng Index achieved a low of 21,696.13 on March 23, 2020.
There is more room for downside risk, as plainly seen in the Dow Theory target of 19,967.86. Hand over fist buying should be considered at levels below the ascending 19,967.86 trend line.
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