Several crucial requests have reached crucial support situations across Asia, so dealers need to decide whether to buy at these lows or try and break them down further. 

 The Hang Seng Index (HSI) has extended its decline to abate our former bias (that the request was performing amulti-month reversal). Part of that original argument was grounded on bullish volume antedating prices, yet in the once two weeks we've now seen bearish volumes dominate as prices have fallen. 

 

 Of course, what has not helped is decline of Alibaba (BABA). The stock has continued to publish new each- time lows on high volume following their profit warning last month. Whilst Tencent (the largest stock on the indicator) is n’t in freefall it's easily lacking bullish interest overall and sits just above a 3-month low. And although investors ditched Alibaba forJD.com, it's hardly in a strong bullish trend of its own. Eventually, the trop three stocks of the HIS aren't‘ doing their bit’to support the broader indicator, which has allowed the HSI to fall to its smallest position since September 2020. 


 The HSI trades in a bearish channel on the diurnal map and instigation leading into these lows has come decreasingly bearish. Thus the bias is now for an eventual break below. Yet the eventuality for a brio from crucial support is also apparent, as the RSI (2) and RSI (14) both reached oversold situations and there has been little in the way of a withdrawal on the diurnal map. 

 

 Likewise, the Hang Seng China Enterprise Index (HSCE) has also stalled at a crucial support position at the same time as the Hang Seng. When you see multiple requests stall at similar situations it can be an suggestion that dealers may be about to bespeak gains or simply switch direction over the near- term. 


 Plans are still on for Hong Kong to incompletely renew withcross-border trip despite Omicron being detected. And if Beijing decides to step by and support the request, maybe it can give a more satisfying brio. But with the rapid-fire rise of Covid in other corridor of the world, it's hard to imagine we've seen‘the’ downward on these indicators just yet. Especially when US requests are only beginning to accelerate their down line. We thus see any implicit brio as an occasion for bears to enter at a further favourable price in expectation of Asian indicators ultimately breaking down further. 

 

 As for the STI, it has fallen over-6 since its false break above a yet resistance zone. The decline was in a fairly straight line and history produced a bullish inside day above the September lows to show bearish instigation is waning. This, along with RSI 2 and 14 being oversold at the lows, echoes the suggestions left by HSI and HSCE. We therefor also suspect that the STI may be suitable to at least break for breath, if not bounce form current situations before losses capsule. And a likely motorist of how high it bounces or how snappily it breaks crucial support is likely to be girding the developments of the Omicron variant.