HK50: sharp drop at high level

Brief analysis of fundamentals:

Hong Kong’s Hang Seng Index closed down 626.36 points, or 3.22%, at 18,814.82 points on December 7 (Wednesday); the three major Hong Kong stock indexes remained volatile in early trading, and the “New Ten Measures” for epidemic prevention were released in the afternoon, and the three major indexes continued to fall after a brief surge , The Hang Seng Technology Index fell to 4% at one point, closing down 3.77% and barely guarding the 4,000-point mark. The Hang Seng Index and the State Index fell 3.22% and 3.31% respectively, and the Hang Seng Index fell below 19,000 points. Aviation stocks fell back in the afternoon but still maintained their upward trend, and most of the traditional Chinese medicine stocks and medical beauty concept stocks strengthened. The net outflow of southbound funds was 1.775 billion Hong Kong dollars throughout the day, and the market turnover was 207.4 billion Hong Kong dollars.

HSI HK50 4-hour chart

Brief technical analysis:

Looking at the 4-hour chart: the high-level short-term momentum has fallen sharply, and it has begun to decline in the short term. The market’s short-term momentum is waiting for an opportunity to enter the market. The MACD indicator is in the long-term zone to maintain consolidation, and the RSI indicator is in the long-term zone. Shock and move down;

Long-short turning point: 19009

Repression: 19330, 19664

Support: 18555, 18278

Trading strategy: bearish below 19009, target 18555, 18278

Alternative strategy: call above 19009, target 19330, 19664