Hk50: short low volatility

Basic analysis:

Hong Kong's Hang Seng Index closed up 91.93 points, or 0.46%, at 19922.45 on Wednesday, August 17; Hong Kong stocks rebounded, and the three major indexes remained volatile throughout the day. The Hang Seng Index rose 0.46%, recovering 20000 points at one time during the session. However, it was again weak in the end of the session. Today, the net outflow of funds from the South was HK $807 million, and the transaction volume of the market was HK $84.1 billion. Large tech stocks rose or fell, dispelling rumors that Tencent plans to reduce its holdings. Meituan rebounded by more than 3% yesterday, while Netease, JD and Alibaba rose slightly. Recently, foreign media reported that Tencent (0700. HK) plans to divest 17% of its holdings in meituan-w (3690. HK). Based on the closing price of meituan on August 16, Tencent's shares are worth about HK $176.8 billion. Meituan's share price fell 9% and Tencent's share price rose 1% on the day of the news.

Hang Seng Index hk50 4-hour chart

Technical analysis:

According to the 4-hour chart, the market is short-term entangled with low-level and wide-range fluctuations, and the bears continue to move downward. The MACD index hovers below the 0 axis, and the RSI index is in the narrow range below the 50 equilibrium line;

Long and short turning point: 19925

Pressing position: 20108, 20343

Support position: 19670, 19451

Trading strategy: bearish below 19925, target 19670, 19451

Alternative strategy: bullish above 19925, targets 20108 and 20343