(The Technical Analyst) The Hang Seng China Enterprise Index has broken through key support and will likely target 9882 and possibly much lower, according to David Sneddon, Pascal Zingg and James Gilbert at Credit Suisse in London.
Sneddon and his team say the Index’s recent three percent fall has taken it below key support from i) the 2018 lows and ii) the 61.8% Fibonacci retracement of the 2016 to 2018 bull trend at 9968/03 (see Chart). With a large top already in place from earlier in 2018, they see the trend as staying lower with support next seen at 9882, the May 2017 low, then the late 2016 lows at 9152/17.
