Momentum Study: Hang Seng Index

We recently studied the Hang Seng Index to see whether Coppock reversals from negative territory have worked as well in China as they have in the U.S. The answer is YES, as shown in the chart below.

The latest “buy” signal was given in July 2016 at a price of 21,891. Based on the minimum rally since 1995, an upside objective of 30,200 is now in play. This would imply a 28% rally from here, and a retest of the October 2007 top. All normal stuff… if one can look past China’s messy banking issues.

© Mark-Ungewitter-Research