Tech shares in Hong Kong rallying....Comparing the 3067 ETF and the top 2 tech stocks of HK, Tencent and Alibaba, we can see that Tencent has broke out of its resistance zone and is rallying higher. Now, Alibaba and the ETF is playing catch up....
I have previously said that if you have limited funds, does not like or dunno how to analyse individual stocks, prefer diversification, the 3067 ETF provides a good exposure to the growth companies of HK Tech space.
Before one gets carried away, you can see that it has been in a range bound territory since Mar 2022. That means, had you bought into this ETF say at the bottom, then congrats you are in profits already. But if you bought at the resistance level, then you are making small profits now. I would urge not to sell unless you need the money as the bull market has just begun.
There is a 1 week holiday in China now and when these locals return, they will be pushing the market even higher. So, these 4 days we are lucky to catch the ride before their returns.
In a frenzy bull market, the pullback may not come as soon as one wanted it as it takes time for the market to digest and cool down. Indicators like overbought, parabolic 90% rally , FOMO , etc are all over the news. So, you have to sure that you are prepared to hold on to these companies for long term if you decide to average up.
Please DYODD
