HK50 head back down?
Updated
After almost 3 days of ranging, it looks like HK50 is finally forming a direction. Historically, based on the last 8 years market day after the budget release, the market tends to close in a bearish candle. Based on the report, it doesn't seem like there is much positive news that can boost up the Hong Kong economy. Thus, fundamentally speaking, I am still Bearish for HK50.
Based on technically analysis, from the weekly to the daily candle, we are heading toward a bearish trend. Weekly formed a top wick and fail to break above 16700. As mentioned with my previous analysis, there are two crucial resistance level before we can start calling this an overall reversal trend, 16700 and 17100. Now than the daily candle also close back below 16500. With just 2 days left in the market, I would not be surprised if we head back down to 16000 level today.
One thing to note, in order for it to head back down, the market typically opens up with a gap to the upside before head back down. Thus, be careful, when market open and we started to see a really fast bullish candle, it could very well be the liquidity grab to the downside. However, if by the end of first 1 hour candle, market is closing a firm bullish candle, such as closing above 16500, we might be able to look for a buy position
Based on technically analysis, from the weekly to the daily candle, we are heading toward a bearish trend. Weekly formed a top wick and fail to break above 16700. As mentioned with my previous analysis, there are two crucial resistance level before we can start calling this an overall reversal trend, 16700 and 17100. Now than the daily candle also close back below 16500. With just 2 days left in the market, I would not be surprised if we head back down to 16000 level today.
One thing to note, in order for it to head back down, the market typically opens up with a gap to the upside before head back down. Thus, be careful, when market open and we started to see a really fast bullish candle, it could very well be the liquidity grab to the downside. However, if by the end of first 1 hour candle, market is closing a firm bullish candle, such as closing above 16500, we might be able to look for a buy position
Comment
Market opens up with a firm bullish candle. As discussed, "by the end of first 1 hour candle, market is closing a firm bullish candle, such as closing above 16500, we might be able to look for a buy position"
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