HK50: Bears tumble sharply

Hong Kong’s Hang Seng Index closed down 105.38 points, or 0.53%, at 19762.2 points on May 10 (Wednesday). They fell by 0.53% and 0.77% respectively, and the Hang Seng Technology Index rose by 0.34%, which was stronger. Small technology stocks were mixed, Kuaishou rose about 2%, NetEase and Alibaba rose about 1%, the US economic downturn will appear this quarter, earlier than previously expected. A variety of factors, including the decline in retail sales and the turmoil in regional banks in the United States, prompted him to accelerate his prediction of economic recession. The net inflow of southbound funds was 1.49 billion Hong Kong dollars throughout the day, and the market turnover shrank to less than 100 billion Hong Kong dollars.

HSI HK50 4-hour chart

Looking at the 4-hour chart: the short-term momentum has plummeted, the market is shrouded in short-term sentiment, and there is a trend of continuing to move downward in the short term. The MACD indicator is weakly hovering below the 0-axis, and the RSI indicator is weakly finishing below the 50 balance line;

Resistance level: 19888 20016

Support level: 19562 19434

Trading strategy: bearish below 19753, target 19562 19434

Alternative strategy: call above 19753, target 19888 20016