Chart the Market (05/05/2025)

Hang Seng Index: 

The Hang Seng Index is trading higher and approaching a critical resistance zone. The MACD shows strengthening bullish momentum, while the RSI stands at 57, indicating a tilt toward bullish bias as it continues to stay above the midline.

From a technical pattern perspective, there’s potential for a double top formation. To confirm a further bullish continuation, traders should closely watch the key resistance level at 22,980.00. A successful breakout above this level could pave the way for an extended rally toward the next major resistance at 24,835.00.

However, if bullish momentum stalls and fails to sustain, the index may face a pullback, potentially revisiting the support level at 21,335.00. A further break below this level could open the door to deeper correction toward 19,055.00.

Resistance Levels: 22,980.00, 24,835.00

Support Levels: 21,335.00, 19,055.00

GOLD, H4: 

Gold prices are climbing and currently testing the Fibonacci expansion level at 3,370.00. A breakout above this level would suggest further upside potential, with the next resistance seen at 3,480.00.

However, technical indicators are sending mixed signals. While price action remains bullish, the MACD is showing signs of diminishing upward momentum, and the RSI is hovering around 65, nearing the overbought threshold. This raises the possibility of a short-term pullback or consolidation.

If gold fails to break and close above the 3,370.00 resistance, it may enter a consolidation phase or retrace to test the support at 3,285.00, followed by 3,220.00 as a deeper support level.

Resistance Levels: 3,370.00, 3,480.00

Support Levels: 3,285.00, 3,220.00