HK50: sharp drop at low level

Hong Kong's Hang Seng Index closed down 369.01 points, or 1.93%, at 18,746.92 points on May 25 (Thursday). The market is worried about the US debt ceiling negotiations. Fitch put the US rating on the negative watch list, and the risk market continued to be cautious. The three major indexes of the Hong Kong stock market continued to fall sharply throughout the day. The Hang Seng Index fell 1.93%, the State Index and the Hang Seng Technology Index fell 2.23% and 2.25% respectively. Heavyweight technology stocks, big financial stocks, and stocks with Chinese prefixes were all sluggish, and the market was under obvious pressure. JD.com, Meituan, and Tencent all fell by more than 3%. 115.5 billion Hong Kong dollars.

HSI HK50 4-hour chart

Looking at the 4-hour chart: the short-term momentum has fallen sharply at a low level, and the short-term decline has not stopped. The market is shrouded in bearish sentiment, and the overall trend continues to move downward.

Resistance level: 18891 19024

Support level: 18585 18481

Trading strategy: bearish below 18765, target 18585 18481

Alternative strategy: call above 18765, target 18891 19024