Warrant of the Day: HSI Bull 63695/63173; Bear 63592/63567, Call 22980, Put 23264

The HSI gapped sharply upward on Thursday, extending its recovery bounce off Tuesday’s low set at 20,372. It thereby cleared several minor resistance levels and reached crucial strong zone of resistance 20,900-21,000. The index needs to take out this barrier decisively on a closing basis to change the short-term technical bias from bearish to slightly bullish. Potential target in case of such a breakout would be at 21,239/21,298 and then last month’s peak of 21,806. Yesterday’s doji candle on the daily chart is indicating tug-of-war between bulls and bears at current levels. Next support is coming in at 20,755 (50-day moving average) and then 20,649 (Thursday’s gap). A breach of this week’s low of 20,372 would confirm the short-term downtrend with next objectives seen at 20,008/20,056 and possibly 19,729-19,778.

HSI Bull: 63695/63173
HSI Bear: 63592/63567

HSI Call: 22980
HSI Put: 23264