HK50: Time to begin looking for buys from the bottom

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Hello,

The Hong Kong 50 index seems to be forming a great pattern for investors to begin looking for buys at the bottom. The Hang Seng dropped to its lowest since the high reached in March 2025 as the Trump administration moved forward with sweeping tariffs on major trading partners, including a 104% levy on Chinese goods set to take effect today.

News of that Hong Kong may offer aid to firms affected by U.S. tariffs will help cushion markets from further falls. Discussions may be the catalyst for the next rise in the index and Hong Kong stocks.

From a technical perspective the index is trading in a sideways corrective pattern, and further falls will provide even better opportunities for buys. We see prices below 18,000 HKD as great entry areas for this index. The recent top of HKD 24,600 will be our medium-term target.

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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