A leading Asian stock market index, the HK50 experienced a dramatic 5 500 drop since February. The struggling Chinese economy, high energy prices and recession fears triggered investors to start getting rid of their Hong Kong assets, which is normally an export oriented economy. 

The clear down trend is confirmed by the alligator indicator firmly pointing south, the %R oscillator is also moving close to the oversold are which indicates sellers are still in control. HK50 is 600 points away from its 20 day moving average and 1200 points away from the 50 day moving average. We have anticipations about a potential price move from the current levels, and to see our prefered direction please visit our Go Premium section.