Chart of the day

Where do we stand fundamentally?

The Hang Seng Index (HK50) has seen notable fluctuations recently. As of the end of September 2024, the index rallied by 6.2%, largely driven by gains in the property sector. This surge followed positive sentiment in the market, with investors reacting to supportive government policies aimed at stabilizing the housing market in Hong Kong. The property sector has played a pivotal role in boosting the index, as key stocks in this sector made significant gains

HK50 is testing 22650 resistance. A break above this resistance will lead to an extension in the third wave higher as the Index reverses from a lower base. Invalidation of this immediate upside extension could come upon a break below 20700.

An invalidation level of a third-wave long-term extension higher and a bullish cycle continuation is 17800. As said this extension higher could lead to a 28500 target in the medium-term to long-term if the HK50 breaks above 22650 with a confirmation.

_{Try a long trade entry upon a break above 22650 with a stop loss below 21500 to target 27000 and higher}