The mainland stock market opened today, and the Chinese and Hong Kong stock markets unexpectedly opened higher and moved lower. The market may start a profit-taking mode. Short-term adjustments will not hinder the Hang Seng Technology Index, and it is still a good time to absorb.
The Hang Seng Technology Index (HSTECH) adjusts its constituent stocks at the end of each month, and the latest update time is December 31, 2022. After adjustment, the three companies with the largest proportion since January 2023 are: Kuaishou, Tencent Holdings and Meituan. The stock prices of these three companies have the greatest impact on the trend of the Hang Seng Technology Index.
market atmosphere
Hong Kong stocks continue to be affected by the trend of mainland China and US stocks. Currently, mainland market sentiment has the greatest impact on Hong Kong stocks, followed by US stocks.
Overseas, U.S. inflation continued to show a cooling trend. Investors remained optimistic about the ample market liquidity brought about by the Fed’s slowdown in rate hikes, and turned their attention toThis week’s FOMC meeting.
last weekTesla’s earnings report double growth, stimulating short-term market sentimentInvestors rekindled confidence, this week the market will usher inMeta after the U.S. stock market on Wednesday, Amazon and Apple’s financial reports after the market on Thursday, among which Apple’s performance is the most important, the earnings season is entering its climax. In view of the huge weight of Apple in the three major US stock indexes, if Apple’s performance is good, it may further promote the rebound of US stocks, which will be beneficial to the Hang Seng Technology Index. If Apple’s performance is weak, it may drag down the stock market and cause investors to worry about the slowdown of the US economy .
On the mainland, the Chinese mainland stock market opened higher and lower on the first trading day of the Year of the Rabbit. In the absence of clear bad news, the market, which has been driven up by a large inflow of funds for a month, finally started a profit-taking mode.
On the one hand, this kind of callback is a spontaneous behavior of the market, that is, after the continuous rise, no one is willing to continue buying at a high level, and they all hope to buy at a lower price, which weakens the buying power; callback process.Hong Kong stocks may pull back on this,From overall view,The pullback has little effect on the uptrend and instead continues to present buying opportunities.
chart trend
The chart comes from the IG trading platform
HSTECH continues to rebound upward along the 2580 trend line, and the upward trend remains unchanged. The support is still at 4400-4500, and a strong rebound will be maintained above this. If it falls below 4400, the rebound may be interrupted, and the support at 4000-3800 will be lowered. Once it stabilizes, it will continue to develop upwards. The key resistance at the top is 5100-5000, and the next level of resistance is 4800. In the afternoon, if the Hengke Index breaks through 5100, it will enter a new stage of rebound and rise, and before that, it will gain momentum at a low level.
strategic orientation
In the long run, the valuation of Hong Kong stocks is low, and the Hang Seng Technology Index has concentrated the best technology and Internet stocks in Hong Kong. However, new changes are taking place in the macro fundamentals, especially the weakening expectations of the Fed’s interest rate hike. After the relaxation of China’s epidemic prevention and control, the economic momentum has re-gathered. Foreign capital has refocused on the pricing of the Chinese and Hong Kong stock markets. Hang Seng Technology Index ETF is preferred. The previous regular investment has continued to make profits, and it is still at a relatively low point. It is advisable to consider holding it firmly and wait for the market to continue to rise.
(by Arthur)
Follow me on Twitter @ArthurZ22426704
In addition to breakthrough trading, shock trading is a commonly used technique. How to make reasonable use of support and resistance, and how to identify false breakthroughs? Keep this guide handy!
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