HK50: high retracement

Brief analysis of fundamentals:

Hong Kong's Hang Seng Index closed down 437.24 points, or 2.2%, at 19,463.63 points on December 12 (Monday). The three major Hong Kong stock indexes opened lower and moved lower throughout the day, and the overall market sentiment weakened. The Hang Seng Technology Index closed down sharply by 4.05%, while the Hang Seng Index and the State Index fell by 2.2% and 3.01% respectively. Large-scale technology stocks all fell, Meituan and Baidu fell 7%, Alibaba, JD.com, Tencent, and Xiaomi all fell; guidelines for the diagnosis and treatment of home-based medicine for infected people were released, and Chinese medicine stocks led the gains throughout the day. Shandong Xinhua Pharmaceutical soared nearly 54% %, the net inflow of southbound funds against the trend was 8.654 billion Hong Kong dollars, and the market turnover was 158.7 billion Hong Kong dollars.

HSI HK50 4-hour chart

Brief technical analysis:

Looking at the 4-hour chart: high-level short-term momentum is waiting for an opportunity to enter the market, short-term retracement, the overall downward trend of shocks, the MACD indicator is in the high position of the long-term zone, and the RSI indicator is hovering in the long-term zone;

Long-short turning point: 19563

Suppression: 19933, 20237

Support: 19111, 18751

Trading strategy: bearish below 19563, target 19111, 18751

Alternative strategy: call above 19563, target 19933, 20237