Home Forex Markets Trend analysis of Hang Seng Technology Index (HSTECH): tumbled more than 4%, fell below 4500 support, or continued to test

Trend analysis of Hang Seng Technology Index (HSTECH): tumbled more than 4%, fell below 4500 support, or continued to test

by WOOWinvest
0 comment
Trend analysis of Hang Seng Technology Index (HSTECH): tumbled more than 4%, fell below 4500 support, or continued to test


On Friday (July 29), Hong Kong stocks fluctuated violently, and the main indexes showed a downward trend. Among them, the Hang Seng Technology Index tumbled more than 4% and fell below the 4500 support. The decline may have been caused by investors digesting some news and a change in sentiment.

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 June 30, 2022.

market atmosphere

The Hong Kong stock market continued to focus on central government policies, the epidemic and the performance of the mainland stock market, while being affected by the pace of global central bank tightening and global recession expectations.

Externally, the Federal Reserve announced the July interest rate on Thursday, announcing a 75 basis point interest rate hike, but Chairman Powell released the wording that interest rate hikes may be slowed down in the future. , the U.S. economy may fall into a technical recession.

The possibility that the Federal Reserve may be approaching the turning point of raising interest rates has greatly promoted the rebound of European and American stock markets. The beautiful financial reports of Microsoft, Apple and other companies have also greatly improved the market sentiment, which should boost Hong Kong stocks.

In the internal market, the Political Bureau of the Central Committee held a meeting to implement normalized supervision of the platform economy, which is positive in the long run. The Hangzhou Market Supervision Bureau recently interviewed food delivery platforms such as Meituan and Ele.me, and strictly prohibits vicious low-price competition. Constituent stocks including Alibaba and Meituan fell with the market today.

In general, HSTECH’s decline was not affected by special news, and it may be due to changes in market sentiment. It is advisable to continue to pay attention to the short-term and medium-term fundamentals. If there is bad news on the fundamentals, the index is expected to continue its downward trend, otherwise the fundamental sentiment will be released, and market buying may still make a comeback.

Chart trend

Trend analysis of Hang Seng Technology Index (HSTECH): tumbled more than 4%, fell below 4500 support, or continued to test

HSTECH maintains the 4800-3800 shock as a whole. As the index falls below 4500, the resistance of 4500-4800 is obvious. Next, pay attention to the fluctuation in the 4500-4300-4000 area, until it effectively breaks below 3800 to open a new downward space. The market outlook will continue to rise above 4800.

Strategy

In terms of strategy, in the long run, the valuation of Hong Kong stocks is relatively low, and the Hang Seng Technology Index is concentrated in Hong Kong’s top technology Internet stocks, so it is still the best choice to buy the Hang Seng Technology Index; short-term market corrections continue to provide opportunities to accumulate chips, and maintain fixed investment ideas and fixed investment. The scale does not change.

(by Arthur)

Follow me on Twitter @ArthurZ22426704

The content on this page is for general market commentary only and may not constitute investment advice of any kind (tax, legal, accounting). This article does not constitute an invitation or recommendation for direct investment in specific financial products. The content is for reference only. Readers should not rely on the information in this document, nor should its actions and omissions be relied upon. We are not responsible for the results of any person’s actions or omissions based on this article. We make no warranties as to the accuracy of the content provided or the adequacy of the information. This article is not intended for distribution within the territory of the People’s Republic of China (excluding Hong Kong, Macau and Taiwan for this purpose), except as permitted by the applicable laws of the People’s Republic of China.

Copyright Notice: Except for the purpose of viewing the information on this website, or as permitted by applicable law or these terms and conditions, no one may copy, use, upload, link, or publicly perform in any way to third parties without our specific written permission , publish or transmit any information or content on this website. We reserve the right to further investigate the legal responsibilities of the relevant actors for the infringing acts of unauthorized reprinting. If you have business cooperation needs such as market promotion and resource exchange, please contact us.

element inside the element. This is probably not what you meant to do! Load your application’s JavaScript bundle inside the element instead.

You may also like

Leave a Comment

Our Mission is to help you make better trading decisions by providing actionable investing content, comprehensive tools, educational resources and assist you in making more money in the stock market.

Latest News

Newsletter

Subscribe my Newsletter for new blog posts, tips & new photos. Let's stay updated!

@2022 – All Right Reserved. Designed and Developed by WOOW Invest

This website uses cookies to improve your experience. We'll assume you're ok with this, but you can opt-out if you wish. Accept Read More

Privacy & Cookies Policy