Hello friends!
As I have mentioned in some other post, I am following some stocks at Hong Kong Stock Market. A couple of months ago I put almost all out i convert to some cryptos the amount i could.
Here I am sharing my thoughts how I am seeing the Hang Seng Index at the moment.
HSI at critical juncture
The Hang Seng Index (HSI) is at a critical juncture, flirting with a major support level that could determine its direction in the coming weeks. After a stellar run from August to October 2024, reaching a peak of 23,218.80, the index has been on a downtrend, leaving a trail of broken rallies in its wake.
Here's why the 19,000 level is so crucial:
- Psychological Barrier: Breaking below this key level could trigger a wave of selling as investors rush for the exits.
- Technical Breakdown: We've seen several attempts to rebound from around 21,300, 21,100 and 20,100, all of which failed to hold. This indicates strong selling pressure.
- Previous Support: The 18,000 level acted as support back in October 2024. If the 19,000 support crumbles, a retest of that level becomes increasingly likely.
What to Watch For:
- Decisive Break: A daily close below 19,000 with high trading volume would be a strong bearish signal.
- Confirmation Signals: Look for bearish candlestick patterns and technical indicators like the RSI and MACD to confirm the breakdown.
- Fundamental Developments: Keep an eye on China's economic data, global interest rates, and geopolitical events, as these factors could impact the HSI's trajectory.
Disclaimer: This is not financial advice. Remember to do your own research and consult with a financial professional before making any investment decisions.
That's all for this post.
Thank you for your support and your following!