HK50: Short term narrow range consolidation

Basic analysis:

Hong Kong Hang Seng Index closed down 75.82 points, or 0.42%, at 18012.15 on October 6 (Thursday); Hong Kong stocks rose in the afternoon and fell again after turning red. The Hang Seng Science and Technology Index fell 0.67% and the State owned Enterprise Index fell 0.63%. Aviation stocks rose further in the afternoon, with Air China and China Southern Airlines up more than 6% and China Eastern Airlines up 5.73%; Holiday concept stocks maintained a strong trend, with Ctrip Group up 4.51%, Fosun Tourism Culture up 3.52%, Haidilao up 2.81%, Tongcheng Travel, Budweiser Asia Pacific and others up more than 1%.

Hang Seng Index HK50 4 Hour Chart

Technical analysis:

The 4-hour chart shows that after the low position and high opening move up, the narrow range consolidation begins. The market is in a state of anxiety in the short term, and the bulls continue to move up. The MACD index stays in the short position and keeps moving up in shock, while the RSI index stays in a weak position near the 50 equilibrium line;

Empty turning point: 17934

Pressing: 18307, 18582

Support: 17695, 17422

Trading strategy: bullish above 17934, target 18307, 18582

Alternative strategy: 17934 lower bearish, target 17695, 17422