The Hang Seng Index Has Risen by Over 13% in 2 WeeksThe Hang Seng Index Has Risen by Over 13% in 2 Weeks
Analyzing the Hang Seng (Hong Kong 50 at FXOpen) chart, we wrote on January 30th that the price was near an important support level formed by the lower boundary (shown in orange) of a long-term channel, which has been relevant since 1995.
According to Reuters, Goldman Sachs representatives noted in a client note that hedge funds were actively buying Chinese stocks – the period from January 23 to 25 saw the largest capital inflow in 5 years.
As of the beginning of May, price action suggests that hedge fund purchases are justifiable – with the Hang Seng 50 (Hong Kong 50 at FXOpen) index rising by over 13% in the past two weeks.
This was partly driven by:
Economic stimulus from Beijing.
The Hong Kong Monetary Authority's (HKMA) decision to keep the base rate unchanged at 5.75%. As reported by the South China Morning Post, HKMA's decisions correlate with the Federal Reserve's policy since 1983, reflecting the local currency's peg to the US dollar.
Technical analysis of the Hang Seng (Hong Kong 50 at FXOpen) weekly chart shows signs of bullish strength:
The HSI price (Hong Kong 50 at FXOpen) remains within the orange long-term channel. After fluctuations in January 2024 around the psychological level of 16,000 points, the price stabilized above this level.
In mid-April, bears attempted to breach the psychological level of 16,000 points but failed.
The last two closed candles on the chart were bullish, with wide bodies closing near the highs – indicating demand dominance.
If bulls maintain control, the HSI price (Hong Kong 50 at FXOpen) could break above the upper boundary of the descending channel (shown in red) and open up prospects for a significant rally.
Trade global index CFDs with zero commission and tight spreads. Open your FXOpen account now or learn more about trading index CFDs with FXOpen.
CFDs are complex instruments and come with a high risk of losing your money.
This article represents the opinion of the Companies operating under the FXOpen brand only. It is not to be construed as an offer, solicitation, or recommendation with respect to products and services provided by the Companies operating under the FXOpen brand, nor is it to be considered financial advice.
HK50 trade ideas
Hong Kong Market has bottomed in Jan 2024Based on the above daily chart, I am making a bold prediction that the HSI has bottomed in Jan 2024. We can see clearly the breakout from the daily chart. What's important is the support level at 16,194, a critical support level that must be maintained !
I will be slowly accumulating this index . Also, watching banks stocks and some tech stocks as well.
Please DYODD.
ICT Long setup HK50, scalpingOur AI system detected that there is an ICT short setup in HK50 for scalping,
Please refer to the details Stop loss, Supply Zone(Sell Zone), TP 1 and TP2 for take profit.
For more ideas, you are welcome to visit our profile in tradingview.
Have a good day!
Please give this post a like if you like this kind of simple idea, your feedback will bring our signal to next better level, thanks for support!
Waiting for Breakout, time to Up Up Up.Based on my previous monthly chart, the trend has bottom at the hidden lines, and now switching to weekly chart, the trends has hit upper resistance.
It may be a breakout for HSI to pursue further uptrend if it can maintain above the resistance line.
If referring to Daily chart, the price is almost hit MA200, further up will test resistance at 18100.
Weekly Analysis - HK50Since March 5, HK50 has been ranging between 16122 to 17101. This is mostly due to the lower volume of trade. Last week it looked like we might finally see a break thru between range; however, it still failed to close below 16122 level.
This week, overall, I am bearish for HK50. However, watch out for the first day of spike up to grab more liquidity. Once the 4h candle starts to close below 16122 level, I will comfortable to enter sell, TP can be roughly 15700 level.
As for buy, it might be little bit tough as we are now forming a lower low low high pattern. Thus, I will need more confirmation before I can enter a buy.
A Han Seng Index Trade Early Monday morning Hello everyone,
The markets are slightly ruffled lately and there is an opportunity to short HS50 on Monday.
Trend:
W1: Up
D1: Down
H4: Down
Moving Average:
Below the Daily MA
H4 pointing downwards
Pattern:
Gartley on M15
Strong resistance at 16450.
Target is 16000
Double top on H1 and lots of divergence
Stop loss of 40 pips and a target of 120.
Apr 17: Uptrend still intactWe are at a decisive point here as the drop has been at an important support. If it continues to break, we will continue with the downtrend. But the uptrend scenario is still the preferred one: with the leading diagonal and a 3-wave correction. If the bullish scenario is correct, we should have a strong bounce from here. Once it breaks above the resistance, we can confirm the bottom is in.
PERFECT Sell opportunity for HK50 - High Reward Low RiskHere is a perfect SELL opportunity for the HK50... You can see the market has not broken pass the trend line to the upside for over ONE YEAR!
The other support trend line has been broken which indicates that the market will continue to head towards the downside...
The current price also rebounded off the 61.8 fibonacci level which is a huge sign that the HK50 will head downwards!
$HSI - It might finally breakout!TVC:HSI Looking like it will finally break above $17000 on weekly close and make a run to $19,000.
Watch NYSE:BABA $KWEB. Both of them are at the critical pivot area.
China's inflation data Yesterday was not good, but the index shrugged it off. It is a sign that the market might be thinking China has bottomed.
HK33 remains mixed and volatile.HK33HKD - 24h expiration
Intraday dips continue to attract buyers and there is no clear indication that this sequence for trading is coming to an end.
Trend line support is located at 16530.
Preferred trade is to buy on dips.
Trading within a Corrective Channel formation.
Risk/Reward would be poor to call a buy from current levels.
50 4hour EMA is at 16720.
We look to Buy at 16700 (stop at 16540)
Our profit targets will be 17100 and 17180
Resistance: 17000 / 17054 / 17150
Support: 16800 / 16700 / 16600
Risk Disclaimer
The trade ideas beyond this page are for informational purposes only and do not constitute investment advice or a solicitation to trade. This information is provided by Signal Centre, a third-party unaffiliated with OANDA, and is intended for general circulation only. OANDA does not guarantee the accuracy of this information and assumes no responsibilities for the information provided by the third party. The information does not take into account the specific investment objectives, financial situation, or particular needs of any particular person. You should take into account your specific investment objectives, financial situation, and particular needs before making a commitment to trade, including seeking advice from an independent financial adviser regarding the suitability of the investment, under a separate engagement, as you deem fit.
You accept that you assume all risks in independently viewing the contents and selecting a chosen strategy.
Where the research is distributed in Singapore to a person who is not an Accredited Investor, Expert Investor or an Institutional Investor, Oanda Asia Pacific Pte Ltd (“OAP“) accepts legal responsibility for the contents of the report to such persons only to the extent required by law. Singapore customers should contact OAP at 6579 8289 for matters arising from, or in connection with, the information/research distributed.
Weekly Analysis - HK50This week has been a really slow with no clear direction. It closes with a doji candle.
For this week trade idea, It will be roughly the same as last week. Buy above 17101 and sell below 16127. If you want a more aggressive buy, depends how the first 4 hr candle closes, buy above 16906 is also a choice.
Weekly Analysis - Hk50March has been a slow and low volume month. Looking for a weekly chart, we are ranging between 16773 and 16334. There is no clear sign of break thru to the upper or lower side.
For this month trade idea, I will set the range between 16127 and 17101. Once the daily start to close firmly above or below these two level, depends on the candle structure, we can then safely go for buy or sell, until then, I will stay out.
Hang Seng's rally seems stable for nowThe Hang Seng is nearly unchanged from where it started the year. Some of the strongest gainers of the index in recent days have been JD and Meituan. However, Tencent Holdings, by far the largest constituent, is down around 20% since January. The latest earnings season in China wasn’t stellar although negativity has arguably been overstated in some media this quarter.
The long-term trend is definitely down, but on this daily chart there are some positive signs. The 20-day SMA golden crossed the 50 from Bands late last month and the 50 also seems to be about to move above the 100. It’s probably going to be very difficult to break through 17,200 because that’s the confluence of the 200 SMA and the latest closing high from 12 March.
In the context of the bounce since 23 January and the slow stochastic close to the zone of selling saturation, the current period’s engulfing candlestick seems cautiously positive. However, it’s normally less risky to wait for such a pattern to complete before acting on it. No significant earnings are coming up next week, so technical action is likely to dominate apart from around Caixin PMI on Monday.
This is my personal opinion which does not represent the opinion of Exness. This is not a recommendation to trade.
Hang Seng index long term time cycle analysisThis is my time cycle analysis on the Hang Seng index. The index is basically dragging along its 30+ year channel bottom, approaching the trough of the green cycle between June-August of this year. This time region is highly likely to produce a tradable bottom, if not 'the' bottom. Unfortunately cycle trough timing zones only give us entry points for swings, whether it ends up being 'the bottom' is to be determined once we get there along with other charting indications.
Note: ALL charts, SPX/NDX, HSI, and other major indexes have a double trough region in 2028 and 2029. It will be interesting to see what happens there.