Could the Hang Seng Index be “Double Topping” at its 2007 highs? Possible, yet not proven!
The Hang Seng Index attempted to break above its 2007 highs at (1), only to see a key reversal pattern take place the following month.
After the reversal pattern, the index has created a series of lower highs, just below falling resistance.
So far this month, the index is attempting to break above falling resistance, where it could be created a bearish reversal monthly pattern at (2).
What would it take to prove that a double top was in play for this key Asian index? A break of support at (3).