The hard-hit Chinese Hang Seng Index tested a big support level this month. Is this key Chinese stock market index ready to stage a rally here?

Let’s take a look at today’s 2-pack of charts to see why the Hang Seng Index (and perhaps select emerging markets) could be primed for a rally.

Hang Seng Monthly Chart

Looking at the chart below, the Hang Seng this month is testing triple support at point (2). As well, it looks to be creating a large bullish reversal pattern.

Good news for bulls if this support continues to hold…

(Click on image to enlarge)

Global Market Performance Chart

As you can see, Chinese stocks have been very hot of late.

(Click on image to enlarge)