HK50: Short position low position consolidation

Basic analysis:

Hong Kong Hang Seng Index closed down 69.1 points, or 0.42%, at 16211.12 on October 21 (Friday); Hong Kong shares showed a narrow and volatile market throughout the day, and the three major indexes that fell sharply in succession showed signs of stopping their decline. The Hang Seng Technology Index fell 0.62%. The trend of large science and technology stocks diverged. Xiaomi rose 1.54%, while JD, Meituan and Tencent rose slightly. The CSRC allowed specific real estate enterprises to raise funds in A-shares. Large infrastructure stocks became popular, and domestic housing stocks rebounded collectively.

Hang Seng Index HK50 4 Hour Chart

Technical analysis:

The 4-hour chart shows that the short-term entanglement and weakness shock, constantly moving downward, the market bearish sentiment continues, the MACD index is in the low position of the bearish region, and the RSI index is in the weak side of the 50 equilibrium line;

Empty turning point: 16395

Pressing: 16650, 16909

Support: 15999, 15734

Trading strategy: 16395 lower bearish, target 15999, 15734

Alternative strategy: 16395 upside bullish, target 16650, 16909