Hang Seng Tech prints bullish reversal from support zoneHong Kong Tech Index CFDFOREXCOM:HSTECHdavidscuttLast week, I highlighted the 4,250–4,100 support zone as an area where traders should be watching closely for reversal patterns or other price action that could provide clues on directional risk. We may now have one. After briefly kissing support at 4,250, Hang Seng Tech has printed a three-candle Morning Star bullish reversal pattern, a development that puts added emphasis on the price action today. Given it has formed from a known support zone following an extended decline, the pattern raises the possibility that a near-term bottom may have been established. Price action today is clearly important, with further gains likely to solidify the belief that a near-term bottom has been formed. If that is the case, upside levels to focus on include the intersection of the August downtrend with 4,460, which was the breakdown zone seen in early September. A break above that would then put 4,660 and the 50-day moving average on the radar, with the more significant 100-day moving average located just overhead. The latter has consistently rejected counter-trend bullish moves over the past year. The oscillators also suggest we may be witnessing the start of a turn in bearish momentum. RSI (14) has reversed out of oversold territory and now sits around 34, while MACD is showing signs of converging on its signal line, paving the way for a potential bullish crossover, albeit in negative territory. Momentum is still with the bears, but it's currently diminishing. A pullback towards 4,250 that is bought, as we have seen over the prior two sessions, would allow for long entry with a tight stop beneath either 4,250 or 4,190 for protection. Depending on entry level, either 4,460 or 4,660 loom as potential initial targets, although the preference would ideally be for the latter from a risk-reward perspective. More broadly, while I’m interested in the potential for a short-term counter-trend rally, with the price sitting beneath its key medium and long-term moving averages, all of which are mildly sloping lower, it would take a far more significant bullish move to get me interested in the index’s longer-term prospects.