HK50: Shock down

Hong Kong's Hang Seng Index closed down 18.41 points, or 0.09%, at 19,743.79 points on May 11 (Thursday); Hong Kong stocks rose in late trading, and the Hang Seng Technology Index rebounded to 1.34%. Nearly turning red, the State Index closed up slightly by 0.18%, and the three bottomed out in the afternoon and rebounded. Large-scale technology stocks rose and fell mixed, Alibaba rose 3%, Baidu rose 1%, Xiaomi, Tencent, and JD.com fell slightly; the net inflow of southbound funds was 3.456 billion Hong Kong dollars throughout the day, and the market turnover was still less than 100 billion Hong Kong dollars.

HSI HK50 4-hour chart

Looking at the 4-hour chart: the market’s bearish sentiment continues, and it fluctuates after a short-term decline, and there is a trend of continuing to move downward. The MACD indicator is weakly finishing below the 0 axis, and the RSI indicator is hovering weakly below the 50 balance line;

Resistance level: 19888 20016

Support level: 19562 19434

Trading strategy: bearish below 19753, target 19562 19434

Alternative strategy: call above 19753, target 19888 20016