HK50: move up the shock

Hong Kong’s Hang Seng Index closed up 100.58 points, or 0.5%, at 20049.31 points on May 5 (Friday); the impact of the thunderstorm on bank stocks in the United States has calmed down, and the three major Hong Kong stock indexes maintained their gains throughout the day, with the Hang Seng Index up 0.5 % back above 20,000 points, the State Index rose 1.18%, and the Hang Seng Technology Index rose 1.03%. Retail sales in Hong Kong rose by 39.4% year-on-year in March, beating expectations. After seasonal adjustment, the month-on-month increase expanded to 6%, higher than February's 3.6%. Retail sales in the first three months rose by 22.3% year-on-year, far more than the 0.4% increase in the last quarter of last year. The net inflow of southbound funds was 809 million Hong Kong dollars throughout the day, and the market turnover was less than 100 billion Hong Kong dollars.

HSI HK50 4-hour chart

Looking at the 4-hour chart: the momentum of the bulls remains volatile and rising, the short-term bullish sentiment is shrouded, the bulls in the market are constantly rising, the MACD indicator is finishing at the lower side of the 0 axis, and the RSI indicator is hovering weakly near the 50 balance line;

Resistance level: 20104 20215

Support level: 19784 19636

Trading strategy: Bullish above 19918, target 20104 20215

Alternative strategy: bearish below 19918, target 19784 19636