HK50: Bears fall

Hong Kong's Hang Seng Index closed down 342.06 points, or 1.71%, at 19617.88 points on April 25 (Tuesday). The flash crash of the First Republic Bank of the U.S. stock market after the market yesterday and before the market today may arouse market concerns. The Hong Kong stock market fell throughout the day, and the market sentiment was sluggish. The Hang Seng Technology Index fell 3.46%, the Hang Seng Index and the National Index fell 1.71% and 1.96% respectively, and the Hang Seng Index fell by nearly 350 points. . Large-scale technology stocks fell across the board. Meituan and JD.com fell by more than 4%. It was previously reported that the Biden administration wanted to restrict US companies’ investment in China. Semiconductor stocks fell continuously. In March, the overall export value of goods was 367.2 billion Hong Kong dollars, a year-on-year decrease of 1.5%, which was worse than the market's expected growth of 0.1%, and exports fell for 11 consecutive months. The net inflow of southbound funds was 3.502 billion Hong Kong dollars throughout the day, and the market turnover was 106.6 billion Hong Kong dollars.

HSI HK50 4-hour chart

Looking at the 4-hour chart: the market is shrouded in bearish sentiment, and there is a short-term downward trend, and the downward trend has not yet shown signs of stopping. The MACD indicator is below the 0 axis and slowly descending, and the RSI indicator is below the 50 balance line and continues to move downward;

Resistance level: 19770 19900

Support level: 19452 19341

Trading strategy: bearish below 19636, target 19452 19341

Alternative strategy: call above 19636, target 19770 19900