The hard-hit Chinese Hang Seng Index tested a big support level this month. Is this key Chinese stock market index ready to stage a rally here?
Let’s take a look at today’s 2-pack of charts to see why the Hang Seng Index (and perhaps select emerging markets) could be primed for a rally.
Hang Seng Monthly Chart
Looking at the chart below, the Hang Seng this month is testing triple support at point (2). As well, it looks to be creating a large bullish reversal pattern.
Good news for bulls if this support continues to hold…
Global Market Performance Chart
As you can see, Chinese stocks have been very hot of late.
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