Hk50: short low volatility

Basic analysis:

Hong Kong's Hang Seng Index closed down 156.17 points, or 0.77%, at 20045.77 on Monday, August 8; Hong Kong stocks continued to decline throughout the day. Market sentiment was low, and the volume of transactions in the market shrank to HK $74.9 billion. The Hang Seng technology index fell 1.17% and 1.82%. The weakness of large-scale technology stocks dragged down the market. Alibaba fell by 4.4%, Xiaomi and JD fell by more than 3%, Tencent, meituan and Kwai all fell by more than 2%. Hong Kong Exchanges and Clearing Limited (HKEx) today (Monday) welcomed the listing of the first batch of A-share structured products - MSCI China A50 connectivity index derivative warrants, further consolidating Hong Kong's position as an offshore A-share risk management center.

Hang Seng Index hk50 4-hour chart

Technical analysis:

According to the 4-hour chart, the low level is surging in the short term, but the short-term market sentiment is still shrouded, and there is a trend of continued downward movement in the short term. The MACD index is in the consolidation of the short area under the 0 axis, and the RSI index is hovering below the 50 equilibrium line;

Long and short turning point: 20047

Pressing position: 20349, 20555

Support position: 19840, 19635

Trading strategy: bearish below 20047, targets 19840 and 19635

Alternative strategy: bullish above 20047, targets 20349 and 20555