HK50: low down

Hong Kong's Hang Seng Index closed down 361.51 points, or 1.94%, at 18234.27 points on May 31 (Wednesday). The RMB exchange rate has accelerated its decline, and China's official manufacturing and non-manufacturing PMIs are both lower than expected. Hong Kong stocks, which had stopped falling yesterday, fell again. The Hang Seng Technology Index once fell 3.7% in the afternoon and rebounded in late trading, and finally closed down 2.04%. The Hang Seng Index and the National Index fell 1.94% and 1.92% respectively. , both hitting new lows since November last year. At the end of May, the Hang Seng Index fell 8.35% this month, ranking first among the three major indexes, and the Hang Seng Technology Index fell 7%. Affected by the decline in U.S. stocks and Chinese concept stocks yesterday, Chinese concept stocks such as Weibo, Tencent Music, and ZTO Express all fell by more than 6%, and heavy technology stocks such as Meituan, Tencent, JD.com, and Baidu all fell; southbound funds went against the trend and had a net inflow throughout the day 1.466 billion Hong Kong dollars, the market turnover increased to 170.9 billion Hong Kong dollars.

HSI HK50 4-hour chart

Looking at the 4-hour chart: the short-term momentum continues to fall at a low level, the short-term decline may continue, the market as a whole continues to move downward, the MACD indicator is in the bearish zone and continues to decline, and the RSI indicator is in the bearish zone.

Resistance level: 18458 18618

Support level: 18047 17927

Trading strategy: bearish below 18292, target 18047 17927

Alternative strategy: call above 18292, target 18458 18618