HK50: shock reversal

Hong Kong’s Hang Seng Index closed up 249.57 points, or 1.27%, at 19,948.73 points on May 4 (Thursday). Heavyweight stocks such as Hong Kong’s major financial companies rose, driving the Hang Seng Index up 1.27% and nearly 250 points, and the State Index rose 1.96%. The Hang Seng Technology Index was relatively flat. It once turned down in the afternoon and finally closed up 0.55%. Large financial stocks (insurance companies, Chinese securities companies, and domestic banks) performed strongly throughout the day, and Minsheng Bank’s performance was particularly impressive, with a surge of more than 10%. The net inflow of southbound funds was 4.427 billion Hong Kong dollars throughout the day, and the market turnover was 105.2 billion Hong Kong dollars.

HSI HK50 4-hour chart

Looking at the 4-hour chart: the low-level short-term shock moves upward, showing a W-shaped trend reversal, the short-term bullish momentum continues to move upward, the MACD indicator is weakly finishing below the 0 axis, and the RSI indicator is weakly hovering near the 50 balance line;

Resistance levels: 20047 20181

Support level: 19719 19605

Trading strategy: Bullish above 19841, target 20047 20181

Alternative strategy: bearish below 19841, target 19719 19605