HK50: high volatility

Brief analysis of fundamentals:

Hong Kong's Hang Seng Index closed up 259.06 points, or 1.25%, at 21052.17 points on January 5 (Thursday); Hong Kong stocks have continued to rise since the beginning of 2023, and the Hang Seng Index has broken through two major barriers and returned to above 21000 points. It rose by 6.42% in a row. The Hang Seng Index rose by 1.25%, the State Index rose by 1.51%, and the Hang Seng Technology Index rose by 1.51%, all of which set new highs during the session. Hong Kong announced the first phase of customs clearance arrangements with the Mainland. In order to ensure the safe, orderly and smooth "customs clearance" of citizens, there will be a limit on the number of people at land ports involved in the first phase of "customs clearance" between Hong Kong and the Mainland. The net inflow of southbound funds was 5.361 billion Hong Kong dollars, and the market turnover was 174.1 billion Hong Kong dollars.

HSI HK50 4-hour chart

Brief technical analysis:

Looking at the 4-hour chart: the high bulls continue to climb, short-term highs encounter resistance and shocks, the market is still bullish, the MACD indicator continues to move upwards in the bullish zone, and the RSI indicator hovers at the high level in the bullish zone;

Long-short turning point: 20966

Suppression: 21388, 21625

Support: 20700, 20441

Trading strategy: Bullish above 20966, target 21388, 21625

Alternative strategy: bearish below 20966, target 20700, 20441