HSI: Although the strong intraday support at 20,650 was breached yesterday, fortunately, it managed to recover by the close. This indicates that yesterday’s movement might have been an intraday shakeout. After all, the sign of a downturn for the HSI this week would be a break below 20,475! For the HSI to perform well, the lowest level for an intraday pullback should ideally stay above 20,835, which is also the strong intraday support and the anticipated low absorption point after a high open. The main intraday resistance lies at 21,090.
Although a high opening today is almost certain, the position of the intraday pullback will be the benchmark for judging the sustainability of the trend. A stable close above 20,780 would indicate a halt in the decline.
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