HK50: Strong decline

Hong Kong's Hang Seng Index closed down 321.24 points, or 1.57%, at 20,075.73 points on April 21 (Friday). Biden will sign an executive order to restrict US companies' investment in key areas of China. The three major Hong Kong stock indexes fell significantly in the afternoon. The Hang Seng Technology Index closed down sharply by 3.13%, the Hang Seng Index and the State Index fell by 1.57% and 1.9% respectively, and the Hang Seng Index narrowly guarded the 20,000-point mark. The three major indexes fell across the board this week, and the Hengke Index fell 4.66% for the week, a relatively large drop. Due to Biden’s latest utterance, technology stocks and semiconductors fell the most, while SenseTime and Meituan fell sharply. The military industry will usher in a rebound after bottoming out. Military stocks bucked the trend and rose. The turnover was HK$106.1 billion.

HSI HK50 4-hour chart

The 4-hour chart: The short-term momentum has fallen strongly, and the short-term decline may continue. The overall short-term sentiment in the market is shrouded, and there is a trend of continuing to move downward in the short term. The MACD indicator is in the bullish zone and slowly moves down to the 0 axis. The RSI indicator is at a balance of 50 hovering below the line;

Resistance level: 20191 20325

Support level: 19893 19770

Trading strategy: bearish below 20061, target 19893 19770

Alternative strategy: call above 20061, target 20191 20325