What now after the rally ?Oh come on, just because you are enjoying the party does not mean the DJ is to continue spin the music and prop it up, ya ? He too needs a break before continuing the part 2 of the party.
So we can see from the chart that it has reached a resistance point , same as Jan 2023 and given the fierce rally over the last 1 week or so, it deserves a pull back. Not forgetting there are many who had been holding to their paper losses for the last few years may want to get out of the market , break even , make a small profit and thus there are selling here, which is expected.
To me, this pullback is another opportunity to accumulate the shares of the amazing company that I am already vested or would like to get my foot in after doing the research. The retracement to 20,104 is more unlikely imo, just a hunch , could be very wrong as this bull run is an unusual one. We have one more day before the mainlanders return to the market and looking at how the system crashed in the securities firm from opening of new accounts for new investors, it is a sign that the weak hands are entering the market.
So, I am studying the market and observing the trend first before taking action. No hurry.........
Please DYODD
HSI1! trade ideas
HSI is going to the moon , maybe ?Rising tide move all boats , so we can see the much awaited news of China government releasing trillions of money into the housing market and encouraging banks to lend out even more money by cutting the reserve requirement ratio by 50 basis points.
It was euphoric yesterday with HSI rallying more than 4% and all tech shares going up to the moon, much to the delight of many who had hang their heads down for years to look for light at the end of the tunnel.
As usual, some analysts said it is still insufficient while others feel this could be a good catalyst for more promising stimulus to come. The important thing is HSI is now out of the bear market zone (20% from the low in Jan 2024). It went above the yellow line in August recently only to fall back again but this time it looks REAL as we have more than 1 week of strong green candles. I will not be adding at this juncture as this parabolic move is likely to cause the price action to consolidate around 19063 to current price before we see it push above the resistance level at 19735 and heads higher in the month of Oct/November when FED cut rates further.
FOMO, there will be a group of people who wants to scalp the market for short gains and flood the social media with all kinds of news to push the price higher. If you are not prepared to hold the shares for long, then it is not wise to chase the price up.
Wait for pull back , be patient....
HANG SENG Strong sell opportunity on recurring fractal.Hang Seng (HSI1!) closed below the 1D MA200 (orange trend-line) yesterday for the first time in a month and confirmed the rejection of August 30. That was a Lower High within the established Channel Down pattern that started on the May 20 High.
This Channel Down is so far following a similar structure with the one that covered the entirety of 2023. The August 30 rejection was in fact also done on the 0.5 Fibonacci retracement level after a -17.30% decline.
If this sequence of events continue to follow the April 17 2023 rejection, we should be expecting the new Lower Low to be formed on the -0.236 Fibonacci extension. Our Target is exactly on that level at 15700.
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Hang Seng Index - are we out of the woods yet ?From the weekly chart, we can see we are still in a downtrend channel though the price has reached the upper channel. Will it breaks out and rally higher or ripe for another shorting opportunity ?
The property market continues to register a downtrend despite numerous measures that the government has introduced. China is now the highest savings rate in the world and the government is doing what it can to boost spending - short of issuing vouchers !
Retail sales is not encouraging from the recent figures and the negative performance from Commerce giant like Alibaba.
Will September be a game changer when US starts to cut interest rates ? Is it possible for smart money to move some of their funds to Asia, especially China ?
HANG SENG Sell Signal on the 1D MA200.Hang Seng (HSI1!) has been trading within a Channel Down pattern and since the start of this week, it's sideways around the 1D MA200 (orange trend-line). As long as the 1D MA50 (blue trend-line) remains intact, we continue to be bearish within this pattern, targeting 16000 next (Support 1), expecting this to be the start of the new Bearish Leg.
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Hang Seng bulls eye retest of 18kWe'll admit that the Hang Seng does not have the most bullish of structures among APAC indices, but it continues to defy bears with a break of key support. And if sentiment for global indices picks up as we suspect, it could pave the way for another cheeky long for Hang Seng bulls.
The index has seen three failed attempts to break beneath 17500 since late June. Sure, we saw one daily close below it, but the move was mostly reversed on Monday. A bullish divergence is also forming on the daily RSI (2), hence the bias for another crack at 18k minimum - a break above which brings the June and July highs around 18,400 into focus.
Yet as the 4-hour chart shows prices paused at the weekly pivot point with RSI (2) overbought, we'd prefer to wait to see if prices retrace within Monday's range before seeking longs. This could help improve the reward to risk ratio for bulls whilst prices hold above last week's low, with 18,000 and 18,400 in focus for upside targets.
Where are we now in the Hong Kong Stock market ?Now, it is always clearer when we have a longer time frame to plot the chart and it seems more common sense why we should buy later and not earlier. Bear in mind that the chart is constantly plotting its price movements and in December 2022, that was the picture shown and one has to rely on this to make a decision.
Of course, if you are trading, then you would have a stop loss, probably at 16968 level. But if you are like me who see the longer term potential of the China market, then a paper loss of 20% is pretty common. And you would average down at 17193 recently when it presents another better buying opportunity.
19116 is an important support level and the price action has went down below it. The next support is at 17193 level and if this breaches, then it is possible that it may returns back to the bearish trend again. I doubt so when the National Team in China are seriously propping up the stock market with different measures.
If we take 14903 as the bottom price point, then the index has risen more than 32% , thus a 8-10% retracement is very common. It should be a buying opportunity for those who continues to believe in the cheap valuation of the Hong Kong stock market.
The only sectors that remains hazy is the property sectors which may take some years to stabilise(2025-2026). Banks are pretty stable not forgetting they are state owned so the government will ensure its viability. Tech stocks are what drives the China market in the coming years - robotics, AI, E-commerce, EV, semiconductors, etc which the Government continues to pour investments into it.
I remain bullish on the HK/China stock market and will continue to accumulate on weakness. Please DYODD
HANG SENG Strong buy opportunity on the 1D MA50.Hang Seng (HSI1!) has been consolidating on the 1D MA50 (blue trend-line) for 4 straight days. Technically it is an attempt to form a bottom, which includes also the 0.5 Fibonacci retracement level, measured from the April 19 Higher Low.
The last time a trend both the 1D MA50 and 0.5 Fib was on December 28 2023 and 2 days later. As you can see that was a downtrend of 2 phases and after the 0.5 Fib/ 1D MA50 test, the price got rejected, starting the 2nd phase that extended up until the 1.5 Fibonacci extension, where the market bottomed.
As a result, it is highly likely to see a symmetrical mirror pattern. This time the 1.5 Fib ext is at 21600 and that is our medium-term Target.
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Buying Tech companies in ChinaIf buying individual tech company proves to be a hassle, costly and too much research work, going into a basket of them like this ETF may be the solution.
We are now in a resistance phase so wait patiently for it to break out with a bullish sign and then you can add some to your portfolio.
Avoid the mentality of always wanting to catch the bottom like buying at 6.50. Buying at this price make sense ONLY if it breaks above the resistance level else it can still goes into a consolidation phase for God knows how long time frame.
Thus, there is always 2 sides of the coin. Imagine waiting for months or years for it to break out , if it does break out , you would have incur the opportunity cost of not able to park the money into other places to make better returns. In retrospect, nobody knows the future and trying to time the market is nothing but a game of speculation.
Hang Seng Index: Home Stretch 🏁The HSI has risen slightly since Friday, which we interpret as part of the internal substructure of the turquoise wave 4. We therefore expect further sell-offs. However, it is not far to our turquoise Target Zone between 18,341 and 17,899 points. Within this range, the index should place the low and turn upwards. Subsequently, a determined rise above the resistance at 19,772 points is on the agenda, which completes the magenta-colored wave (1). Accordingly, long positions could be opened within the Zone, with stops placed around 1% below the lower edge. Should the price fall significantly below the lower edge, this will set in motion our 38% probable alternative scenario, which implies further setbacks with the magenta wave alt.(ii).
The reduction target is 16,500According to the Butterfly pattern, the Fibo perfectly converges the decline at the target of 16500. We also go down the channel where the lower border of the channel will be. All 3 parameters should be added together. We should reach it by October, there will be a great point for going to long.
HANG SENG This pull-back is the final buy opportunity.Hang Seng (HSI1!) has started a technical pull-back after getting rejected at the top (Higher Highs trend-line) of the Bullish Megaphone. The minimum correction within this 4-month pattern has been -5.29%, so we are looking to buy after such a dip, potential 1D MA50 (blue trend-line) test and target the 2.0 Fibonacci extension (19700). This is the standard target on Inverse Head and Shoulders patterns.
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Hang Seng: Is a Turnaround Coming?The Hang Seng Index, with everything measured in Hong Kong Dollars rather than US Dollars, offers a distinct perspective within our analysis portfolio, focusing on the Hang Seng Index Futures contract. Starting with a weekly chart overview, we've identified that the initial cycle likely concluded in 2008, followed by a flat correction. Notably, the correction for Wave B exceeded 100%, suggesting that the drop towards Wave (A) level, or slightly lower, is plausible.
However, there's an alternative perspective that at Wave (A) already concluded Wave II, although the rapid temporal progression for such a wave suggests this is less likely. We anticipate further declines, yet it's critical to acknowledge a potential Wave (1) and Wave (2) formation at the 78.6% level. A drop below this point should lead us towards the HK$10,500 mark, aligning with our initial entry point around HK$11,300. Despite this, it's premature to issue a limit order given the ample time to observe developments.
Daily chart observations further indicate an expectation of a 5-wave structure from (B) to (C), which has been forming quite elegantly despite Wave ((iv)) intruding into Wave ((i)) territory. This necessitates our acceptance of the current count unless we opt for an interpretation that sees a completed Wave (2) at the point marked as Wave ((iii)).
Delving into the 4-hour details reveals a persistent downtrend from the onset of what's identified as Wave ((iv)). To reverse this trend, surpassing the invalidation zone would be crucial, suggesting a reconsideration for long positions. Until such a shift occurs, the bear flag's presence likely continues to restrain any significant upward movements in the market.
HANG SENG Bearish for the next 2 months.Hang Seng (HSI1!) is trading within the 1D MA50 (blue trend-line) and 1D MA200 (orange trend-line). The dominant pattern is a Channel Down and as long as the 1D MA200 holds as a Resistance, we will continue selling every Lower High.
The structure of the pattern is similar to the 2021/22 Channel Down. Once the 1D MA50 breaks again, we will have a confirmed sell signal, targeting the bottom of the Channel Down at 14500.
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Hang Seng Analysis - Continuous, Just as the Markets !This is a Thread, so Follow for Technical Analysis performed with TrapZone Pro & UMVD Indicators.
* Trend is Based on TrapZone Color
* Bar Colors give us Momentum Green from strong Up Moves. Red Bars point to strong Down Moves.
* Red UMVD = Selling Pressure & Green UMVD = Buying Pressure. Purple is for Divergence = Battle of Supply & Demand
>> USE PAGE DN to go DOWN To the LATEST Post <<
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2-25-2024
Strong Upside Momentum with wide GREEN TrapZone established for a while and GREEN UMVD continues. Class A Entry at the top of the TrapZone.
Bears Still Dominate the Hang SengMany investors currently firmly believe that the Chinese Hang Seng Index will soon rise. The economy in the Middle Kingdom is performing well in global comparison - so it can't be that the local stock market is so weak, right? Well, as you know, stock prices don't always have something to do with the actual state of the economy. That's why we remain pessimistic about the Hang Seng. We're opening a short position and targeting the range around 12,000 points. This may seem low, but quite achievable. We're setting a comparatively tight stop loss to optimize our risk-reward ratio.
HSI: Already finished? 👀The HSI has risen sharply since Monday. Nevertheless, we continue to believe that the index is still working on a magenta-colored downward structure and is therefore not yet finished with its correction. Only after this five-part wave, and thus the turquoise-colored wave 3, has come to an end should things pick up a good bit - even if there is still further downside on a Long-term level. However, there is also a 33% probable alternative, which envisages a sustained rise and considers the past low to be the low of the green wave alt.(2). This scenario comes into effect if the resistance at 18 846 points is exceeded.