Skip to main content

Hang Seng Index (HSI) Facing Downtrend Pressure

 


Hang Seng Index (HSI) Facing Downtrend Pressure

What are we expecting?
Hang Seng Index (HSI) fell below its key support level at 28,000. This break is more significant than usual as HSI has just experience index being halted at 31,000 level, and mounting Supply as indicated by our proprietary FFI (Fund Flow Index) indicator. 

These actions suggest the index is in a Distribution Phase, entering Mark Down phase.

First level of support for HSI will be at 26,000 area cushioned by high volume area and 1.618% Fibonacci level.

Who should be concerned?
Investors: Investing in the Hong Kong Market may reduce position at this point but also keep a lookout for stocks that show signs of bottoming during the Mark Down process.

Traders: Taking short positions is preferred till 26,000 target reach or character of accumulation phase is observed. 

Why the Mark Down?
Stock market is always forward priced, we will not be able to clearly define the reason till 3-6months later. One marco trend that is developing is expectation of inflation, which leads to hike in interest rate environment, threatening companies recovering from the COVID-19 pandemic.


*Disclaimers apply


Tags

Most Popular

Palantir Technologies Inc PLTR: Technical Rebound at Sight After US Broad Market Stabilises

  Palantir Technologies Inc. (PLTR) USD86.24 Palantir (PLTR) posted a bullish reversal, closing above the 13-day SMA (83.56) with significant volume expansion. This signals potential momentum strength in the near term. First key resistance zone between the 50% and 61.8% Fibonacci retracement levels (USD 99.85 – 105.79), which could present selling pressure. Disclaimers apply
Read more

DBS Group Holdings (D05) and Straits Times Index (STI): Technical Change of Momentum

         DBS Group Holdings (D05) and Straits Times Index (STI):  Technical  Change of Momentum  Recent price developments in DBS Group Holdings (SGX: D05) and the Straits Times Index (STI) signal a critical inflection point. Both instruments have breached established ascending trendlines, suggesting a potential reassessment in investor sentiment and market trajectory.  DBS Group Holdings (D05) Price Dynamics:  DBS has decisively broken below its ascending trendline, closing at SGD 44.23, registering a 3.53% decline. The price action underscores weakening upward momentum and raises the probability of an extended correction phase. Key Technical Levels: 38.2% Fibonacci retracement: SGD 41.45 50% Fibonacci retracement: SGD 39.78 61.8% Fibonacci retracement: SGD 38.12 Full retracement: SGD 32.72 Outlook:  The breach beneath the trendline suggests an erosion of bullish conviction. Immediate attention should be on the 38.2% retracement le...
Read more

Week Ahead: US Indices Momemtum in Question

    Week Ahead: 10 March 2025 Key event this week was  U.S. indices technically closed below the key 30-week (or 150-day) moving average . For the upward trend to continue, the indices need to reclaim levels above the moving averages. Remaining below the 30-week (or 150-day) moving average could indicate that the upward trend has reversed downward. However, in the short term, we expect a rebound as the indices trade near their respective support levels. Medium Term: S&P 500 (SPX):  The S&P 500 broke below its key upward trendline, which had been established since October 2023. In the longer term, we expect the index to trade sideways or move in a downward direction. In the short term, we anticipate the S&P 500 will find support at the 5,700 level and could rebound to test the 5,860 and then the 5,966 resistance zones. Straits Times Index (STI):  The technical trend remains bullish. We maintain a constructive outlook while staying vigilant for any sig...
Read more