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Technical thoughts on the HK China Index please

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Question asked 08/09/2023

Technical thoughts on the HK China Index please

Hi guys, Thanks again for the updates and reviews each day, by far some of the easiest to read through. On Monday morning you discussed Chinese facing stocks with HK-H chart. Could you provide some more details about your thoughts how this may play out over the short term. I've seen it drop over 5% this week and may have jumped the gun with an entry. I had areas of 6400, 6300 & 6200 marked as short term support. Do you think we could see this back at recent lows of 6000? I was looking for 6900 & 7200 for short term target but doubting my view now. I know its quite volatile, hopefully we'll see a big turn around on Friday. Thanks Simon

Answer

Hi Simon,

Firstly we really appreciated the feedback especially as its positive, we do try and convey all of the markets nuances in a simple & easy manner.

In terms of the China facing stocks, HK China Index, we believe the index is “looking for a low” as Beijing pulls their targeted stimulus levers but its hard to pinpoint from where it will potentially take off hence we would call it an accumulate into weakness style scenario.

Our preferred scenario is the 2023 year low ~6000 will hold but established trends do have a habit of extending for longer than many think/foresee – our initial target is in excess of 8,000 assuming that 6,000 does indeed hold.

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Hang Seng China Enterprises index

LAST UPDATED 08/09/2023 11:11

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