HK50: The short position continues to decline

Basic analysis:

The Hong Kong Stock Exchange was closed for the Double Ninth Festival on Tuesday. Hong Kong Hang Seng Index closed 143.32 points lower, or 0.83%, at 17079.51 on October 3 (Monday); The three indexes continued to decline. The Hang Seng Index fell below 17000 points in the day, hitting a new low since October 2011. Property stocks were the most eye-catching under the stimulus of policies, especially the domestic property index, which rose by more than 4%. Baolong Real Estate, an individual stock in the industry, rose by 13.7%. Country Garden, which rose by 9% last trading day, rose by 8.8%; Hang Seng Index Co., Ltd. will announce the results of the review of Hang Seng Index series in the third quarter of 2022 on Friday, November 18, 2022.

Hang Seng Index HK50 4 Hour Chart

Technical analysis:

The 4-hour chart shows that the bearish power maintains a weak shock downward, the short-term decline has not stopped, and there is a trend of further downward movement. The MACD indicator hovers at the low position of the bearish area, and the RSI indicator is at the low position of the bearish area, which is in a narrow range of consolidation;

Empty turning point: 17136

Pressing position: 17358, 17575

Support position: 16886, 16678

Trading strategy: 17136 lower bearish, target 16886, 16678

Alternative strategy: 17136 upside bullish, target 17358, 17575