HK50: Short position falls below the previous low

Basic analysis:

Hong Kong Hang Seng Index closed down 384.3 points, or 2.23%, at 16832.36 on October 11 (Tuesday); Hong Kong stocks fell sharply again, and the three major indexes hit adjusted low prices again. The Hang Seng Science and Technology Index fell 3.55% to below 3300 points, both of which recorded four consecutive falls. Large technology stocks still led the market lower, with Tencent falling below HK $260; Today, the net inflow of funds from Nanxia was HKD3.997 billion against the trend, and the turnover in the market was HKD91.2 billion.

Hang Seng Index HK50 4 Hour Chart

Technical analysis:

The 4-hour chart shows that the bearish sentiment of the market continues to move downward. After falling below the previous low, it continues to move downward. The short-term decline has not stopped. The MACD indicator remains in the bearish area and remains in the downward direction, while the RSI indicator remains in the weak position below the 50 equilibrium line;

Empty turning point: 16984

Pressing: 17197, 17392

Support: 16679, 16480

Trading strategy: 16984 lower bearish, target 16679, 16480

Alternative strategy: 16984 upside bullish, target 17197, 17392