The set up on the Hong Kong Hang Seng Index is looking rather similar to how the ASX-200 appeared prior to the recent Aussie index breakout. 

ASX-200 (XJO): the ASX-200 spent over a year chopping around either side of the 61.8% fib of the bearish GFC move. Price recently continued to consolidate and set up within a symmetrical triangle before breaking out, quite ceremoniously, following the Australia Day Weekend. I wrote a separate post about this bullish ASX-200 breakout back on January 27th that can be found through this link.

Hang Seng Index: Hong Kong’s Hang Seng Index has also spent a lot of time chopping around the 61.8% fib of the bearish GFC move as well. Price is now also consolidating within a triangle; as the ASX-200 had done before its recent break out. I think it will pay to watch for any bullish breakout and continuation move here as evolved with the ASX-200:

Summary:The Hang Seng Index is setting up similarly to how the ASX-200 appeared prior to its bullish breakout. Keep an eye on the Hang Seng’s triangle trend lines and momentum indicators to identify any similar bullish breakout and continuation move on this index.