HK50: Shock down

Hong Kong’s Hang Seng Index closed down 267.86 points, or 1.28%, at 20,719.81 points on February 17 (Friday). Expectations of U.S. interest rate hikes rose, and market risk appetite decreased. Hong Kong stocks fell unilaterally throughout the day, and the Hang Seng Technology Index fell 2.51% led the decline, the Hang Seng Index and the State Index fell 1.28% and 1.39% respectively, and the three major indexes continued to pull back this week. The drug stock Shandong Xinhua Pharmaceutical Co., Ltd. rose more than 26%, which was an eye-catching performance. The net inflow of southbound funds was 1.41 billion Hong Kong dollars, and the market turnover was 89.7 billion Hong Kong dollars.

HSI HK50 4-hour chart

Looking at the 4-hour chart: the short-term momentum has moved down again after short-term consolidation, the market’s short-term sentiment remains, the MACD indicator is weakly finishing below the 0 axis, and the RSI indicator is hovering weakly below the 50 balance line;

Long-short turning point: 20842

Suppression: 21031, 21233

Support: 20532, 20330

Trading strategy: bearish below 20842, target 20532, 20330

Alternative strategy: call above 20842, target 21031, 21233