Hang Seng Bull Market ImplodesHong Kong’s Hang Seng is imploding with the price cascading lower after breaking support at 22,570 earlier today. The subsequent unwind saw 21,728 and 21,377 melt like a hot knife through butter before the price eventually bounced at 20,535 — another minor level that acted as both support and resistance earlier this year. That makes it an initial level of interest for those contemplating setups involving Hang Seng futures.
A clean break of 20,535 would put a retest of minor levels such as 19,718 and 19,430 on the table. The 200-day moving average is also found at 19,891, although one glance at how price has interacted with it previously suggests it may be entirely ignored in this environment. Beyond that, the uptrend dating back to the early 2024 low is another level to watch, although it hasn’t been tested enough to declare it meaningful downside support. It’s located around 18,550 today, just beneath the January 2025 swing low of 18,694.
While they provided no support earlier today, 21,377 and 21,728 may still be of interest if bears choose to set up shop above either. Watch the price interaction at these levels if the Hang Seng gets back there.
Momentum signals remain firmly with the bears, with MACD and RSI (14) both negative and trending strongly lower. While RSI is now oversold, it was also extremely overbought earlier this year — and that didn’t stop further gains at the time. The same could easily apply on the downside. The overall momentum signal favours selling rips and downside breaks near term.
Good luck!
DS
