Hong Kong Market

The Bear trend continues for the Hong Kong market. The Hang Seng Index is currently below its 50 day and 200 day moving average.

There is no end in sight for the world stock market. The number of countries slipping into recession is slowly increasing with Japan being the latest victim.

The Hang Seng Index slipped into Bear trend since 26 May 08. We are 120 trading days into the current down turn.

Bearish Oil

Oil continues to trade with a “bearish” bias. The USO chart shows that oil has been trading in “Bearish” phase since the beginning of October.

With the story of a slow down in economy together with strengthening of the US dollar, this bearish trend looks set to continue.

The chart shows a pivot point at $50.44. If price falls through this level, it will confirm the downtrend and price is likely to fall to the $42 region.

The 50 day moving average is now at $75 and 200 day moving average is at $88. These 2 levels form the resistance going forward.