Hong Kong 50
Short

HK50: A medium term sell setup forming

105
Hello,

I see an opportunity for a short position on the HK50. The price is currently facing strong resistance at the upper range, struggling to break through, which suggests weakening bullish momentum. Additionally, the MACD indicator has aligned at a zero-line bearish crossover, reinforcing a potential downward move.

Trade Setup:
Entry Point: Initiate a short position on confirmation of a strong bearish candle forming at the current resistance level, indicating rejection from the top.

Target 1: HKD 19,165 – a conservative level where initial profit-taking could be considered.

Final Target: HKD 16,766 – the primary downside target based on key support levels and historical price action.

Stop Loss: Place above the recent high to protect against unexpected breakouts, ensuring disciplined risk management.

Disclosure: I am part of Trade Nation's Influencer program and receive a monthly fee for using their TradingView charts in my analysis.

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