Home Forex Markets Hang Seng Technology Index (HSTECH) Trend Analysis: Market sentiment is cautious, focus on 3800 key support

Hang Seng Technology Index (HSTECH) Trend Analysis: Market sentiment is cautious, focus on 3800 key support

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Hang Seng Technology Index (HSTECH) Trend Analysis: Market sentiment is cautious, focus on 3800 key support


The unexpected rise in U.S. CPI data this week has raised investors’ expectations for a sharp interest rate hike by the Federal Reserve. U.S. stocks have tumbled amid a surge in the dollar, and global stock markets have weakened. Although the epidemic situation in China is getting better, many US restrictions on China have dragged down Hong Kong stocks.

The constituent stocks of the Hang Seng Technology Index (HSTECH), the data is from the official website of the Hang Seng Index, and the update time is August 31, 2022. After adjustment, the three companies with the largest proportion since September are: Jingdong Group, Meituan and Alibaba.

market atmosphere

The performance of Hong Kong stocks continued to be affected by both mainland and overseas factors. The Fed was back on the cusp of rising CPI, and the market was betting on aggressive interest rate hikes. The epidemic situation in China has improved, but the U.S. has introduced a number of restrictive measures, making the stock market cautious.

Overseas, the market pays attention to the US inflation situation for clues on the Fed’s monetary policy. The annual rate of the US CPI in August rose to 8.3%, which was lower than the previous value of 8.5% but higher than the expected value of 8.1%. The core CPI recorded 6.3% higher than the expected 6.1% and the previous value of 5.9%. The data sparked investors’ renewed bets on the Fed to raise interest rates sharply, and even believed that the Fed may raise interest rates by 100 basis points next week. The dollar soared and global stock market liquidity and sentiment were severely hit.

On the mainland, the epidemic situation in many places in China has improved, but US President Biden signed a new decree to expand technical restrictions on China from chips and energy to the biological field, causing related sectors to suffer setbacks; at the same time, Buffett reduced his holdings in BYD’s new energy concept. Caused a lasting impact, the operation of the “stock god” made investors hesitate, which in turn depressed the market sentiment of mainland and Hong Kong stocks.

In general, both overseas and mainland stock markets are under great short-term pressure, and investor sentiment tends to be cautious. The trend of the Hang Seng Technology Index remained volatile and declined.

Chart trend

Hang Seng Technology Index (HSTECH) Trend Analysis: Market sentiment is cautious, focus on 3800 key support

HSTECH continues to oscillate between 4800-3800, and the index is moving closer to the lower track of 3800. The 4000 line causes short-term pressure, and the previous resistance is at 4300-4500. If the Hang Seng Index breaks below 3800, or further falls below the March low of 3500, if it can stabilize at 3500-3800, there is still a possibility of bottoming out, and it needs to stand above 4000 to accumulate momentum for further rebound.

Strategy

In terms of strategy, in the long run, the valuation of Hong Kong stocks is relatively low, and the Hang Seng Technology Index has concentrated on the best technology and Internet stocks in Hong Kong. As the prospects of Chinese stocks are improving, it is still the best choice to buy the Hang Seng Technology Index ETF; the short-term market continues to be affected. Various factors are disturbed and callbacks are made, which is an opportunity to accumulate chips, and the idea of ​​​​wet storage and fixed investment remains unchanged.

(by Arthur)

Follow me on Twitter @ArthurZ22426704

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