HK50: high retracement

Hong Kong’s Hang Seng Index closed down 619.17 points, or 2.73%, at 22,069.73 points on January 30 (Monday). The year of the Rabbit in Hong Kong had a good start last week. Today, the three major indexes pulled back sharply. The Hang Seng Technology Index fell 4.84%, the worst performance , The Hang Seng Index and the State Index fell 2.73% and 3.57% respectively, and the Hang Seng Index plummeted more than 600 points. Military stocks remained strong throughout the day. According to news that Hong Kong may be exempt from nucleic acid customs clearance in the next few days, most local stocks in Hong Kong rose. MTR Corporation and CKH Holdings bucked the trend and rose nearly 2%. The net outflow of southbound funds was 3.719 billion Hong Kong dollars, and the turnover of the market enlarged to over 200 billion Hong Kong dollars.

HSI HK50 4-hour chart

4-hour chart: bullish momentum maintains volatility and rises, short-term highs encounter resistance and retraces, market short-sellers wait for an opportunity to enter the market, the short-term retracement trend may continue, there are signs of market bearishness, MACD indicator is in the bullish zone, and RSI indicator is in the bullish zone Area finishing moved down;

Long-short turning point: 22232

Compression: 22554, 22856

Support: 21795, 21472

Trading strategy: bearish below 22232, target 21795, 21472

Alternative strategy: call above 22232, target 22554, 22856