HK50: Bears fall

Hong Kong's Hang Seng Index closed down 417.68 points, or 2.09%, at 19560.57 points on May 17 (Wednesday). The US dollar was strong, the RMB exchange rate broke 7, and the market risk appetite was cautious. The decline in Hong Kong stocks further increased in the afternoon. The Hang Seng Index fell by 2.09% and fell by more than 400 points. The State Index and the Hang Seng Technology Index fell by 2.25% and 2.23% respectively. The large-scale technology stocks that had generally risen all turned down. Meituan and Xiaomi fell by more than 3%. The Hong Kong Legislative Council passed the "Stamp Duty (Amendment) Bill 2023" for the third reading today, implementing the "Budget" to adjust the rules for buying and selling properties. The net inflow of southbound funds was 7.479 billion Hong Kong dollars throughout the day, and the market turnover shrank to 101.6 billion Hong Kong dollars.

HSI HK50 4-hour chart

Looking at the 4-hour chart: the market is shrouded in bearish sentiment, the short-term decline has not stopped, the market’s short-term momentum continues to move downward, and is about to fall below the previous low node, the MACD indicator is finishing below the 0 axis, and the RSI indicator is below the 50 balance line. move down slowly;

Resistance level: 19667 19794

Support level: 19345 19218

Trading strategy: bearish below 19540, target 19345 19218

Alternative strategy: call above 19540, target 19667 19794