Hang Seng Technicals
For the record I am long term bullish on Chinese equities for many reasons. But even if you can see new all time highs the market doesn't go straight up all of the time. The Hang Seng has been falling for years basically. Recently the macro environment has sent all markets down the drain. Things are not looking like they will get better any time soon unless inflation persist. There are a few interesting technical situations we may be in.
$Hang Seng Index(800000.HK$
$Hang Seng Index(800000.HK$
On the first chart you can see of these long term horizontal lines acting as support. The price of the Hang Seng has had some strong bounces off of this level as the monthly candles have large wicks showing buying pressure near that long term horizontally support level. If we dip below this level there is a previous low that we might bounce off of but it will look very bearish for the long term holders of this index.
In my opinion one of the most important technical circumstance is how the price has dipped below these two very long term trending support/resistance levels. These levels go back several several years so these were very strong supports. Now they have become very strong long term resistance levels. You can see how the price is trying to reach above these levels as the price has retested these levels a couple times only to reject these levels. Below these levels is very bearish so if we can not get back above then I can definitely see a lot of red in the future. The Hang Sang really needs to get above this level for more buyers to feel safe enough to step in.
A very important note and probably a fundamental rule in my trading is, "a trend is your friend." Im sure you have heard this. Dont fight the trend. Hang Seng has been in a clear downtrend on the weekly candles for a long time. Wait for the trend to break. Dont try to call it early. Price is actually at the upper range of this downtrend and it could break it soon. But for now the trend is down.
Right now the only longs I am looking for are short term due to the temporary long term downtrend on the weekly candles. So on the 4 hour candles we have a pretty smooth price channel to play off of. Currently the price is near support so you can play the bounce off of support or the breakdown of support. The way chinese equities have been outperforming I wouldnt be surprised if we continue up in the 4 hour price channel. If Hang Seng breaks down below there is a support below and a potential new very short term price channel that may form i highlighted in blue. Im not predicting the light blue price channel but it is always good to have a potential setup to plan for.
Remember a trend is your friend. The trend in Hang Seng is down right now with the rest of the markets around the world. For a technical trader you should be looking for shorts. But the Hang Seng has been having some whipsay action at this price level whish is conducive of buyers stepping in. If you are conservative then you may want to wait a little longer before buying in. If you are impatient then trade the 4 hour candles.
Be careful. Be patient. And good luck
$BABA-SW(09988.HK$ $Alibaba(BABA.US$ $MEITUAN-W(03690.HK$ $BYD Company Limited(002594.SZ$ $Bilibili(BILI.US$ $NIO-SW(09866.HK$ $Hang Seng TECH Index(800700.HK$ $CSI 300 Index(000300.SH$ $SSE Composite Index(000001.SH$ $JD.com(JD.US$ $JD-SW(09618.HK$ $Baidu(BIDU.US$ $BIDU-SW(09888.HK$ $XPeng(XPEV.US$ $TENCENT(00700.HK$ $Tencent(TCEHY.US$
Be careful. Be patient. And good luck
$BABA-SW(09988.HK$ $Alibaba(BABA.US$ $MEITUAN-W(03690.HK$ $BYD Company Limited(002594.SZ$ $Bilibili(BILI.US$ $NIO-SW(09866.HK$ $Hang Seng TECH Index(800700.HK$ $CSI 300 Index(000300.SH$ $SSE Composite Index(000001.SH$ $JD.com(JD.US$ $JD-SW(09618.HK$ $Baidu(BIDU.US$ $BIDU-SW(09888.HK$ $XPeng(XPEV.US$ $TENCENT(00700.HK$ $Tencent(TCEHY.US$
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102640653 : Thanks
SpyderCallOP 102640653: no problem. im looking at baba and tencent now. i will get back to you
1234556789 SpyderCallOP: Will the meaning drop? Still,
solo invest 1234556789: Hang sent looks good today. I don’t think he was predicting the movements. I think he was saying the downtrend has not been broken yet. So long term trend is still down. It could turn around at any time but it’s down currently. But Chinese stocks have shown a lot of strength lately and hang sent is near breaking out of the downtrend
solo invest 1234556789: If the hang sent goes up a little more then the downtrend will be broken based off of these charts
102640653 : Look bitcoin running again
Evelynne : Watching 30 at the end of July
MonkeyGee : China market can't go anywhere significant if USA keep bashing them
SpyderCallOP 102640653: I almost missed the ride again. Tight before getting some sleep I bought a little Ethereum classic and Polygon. Made some solid gains. I hope your bot was making you some bank
SpyderCallOP Evelynne: Im confident that it will get that high. Im just not sure how long it will take. But it looked great today. Tomorrow will be the deciding day I think if it will bounce or break down. It has nowhere to go. I highly doubt that the markets will finish flat tomorrow. The daily indicators look fairly bullish but that can change quick so you can not only look at the indicators
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