Technical forecast for Hang Seng – 3rd June 2013

Hang Seng retested May lows at 22110/064 on Friday. Although we are oversold in the short term the outlook remains weak so there is a risk of a break lower to test support from the 200 day moving average at 21962/938. Watch for a bounce from here but a break lower could then target 21762.

Immediate resistance at 22330/380 should see us struggle but above here look for 22580/620 & a high for the day likely here with the daily chart still looking negative.