I believe the weekly momentum indicators are supportive of another 25% move higher. Yes, the RSI is extremely overbought, but comparing it to the 2006-2008 time frame, it can stay overbought for quite a bit longer. The MACD also appears overbought, now sitting at five year highs, but it too can rise quite a bit more and stay within historical bounds.
As to "when" the SSEC will hit my price target, I have no idea. It might go on an epic run and hit 5,000 next week or next month - I really don't know.
The ascending triangle is a bullish pattern, which gives an indication that the price of the security is headed higher upon completion. The pattern is formed by two trendlines: a flat trendline being a point of resistance and an ascending trendline acting as a price support.
The price of the security moves between these trendlines until it eventually breaks out to the upside. This pattern will typically be preceded by an upward trend, which makes it a continuation pattern; however, it can be found during a downtrend.
The most telling part of this pattern is the ascending support line, which gives an indication that sellers are starting to leave the security. After the sellers are knocked out of the market, the buyers can take the price past the resistance level and resume the upward trend.
To summarize, I agree with pundits such as ZeroHedge that the Asian markets are moving too high and too fast. Parabolic moves like we've seen over the past month are simply unsustainable and almost always end in tears. There's an old saying that markets can remain irrational longer than you can remain solvent. In other words, don't try and pick the top. Bubbles can last much longer than you might imagine. If you're a trader, then I think you have an opportunity to make some serious money here if you can stay nimble. If you're a long term investor, then try to avoid the allure of these screaming hot markets as they can reverse on a moment's notice. All in all, I do see additional upside for the HSI and SSEC as I've outlined above. However, there will come a time when both decide to take the elevator back to reality.