Before we talk about the rebounce, there are few news that we should keep in our mind.
Last week, Evergrande (3333) debt crisis event, and also the announcement of Macau government to amend the gambling gaming law, have caused serious impact to Hong Kong Stock market. The trend start to go down trend at 13 September to 16 September. Since the incidents haven’t been resolved, the panic of the Hong Kong investors not stable yet.
From chart, we could find out that even the trend keeps go down trend, but the and of three rebounce point are one wave higher than one wave. And each time the trend reached the low point (27/07) (20/08) & (16/09), obvious rebounce will happen. THERE IS A RESISTANCE AT 24580 TO PREVENT THE TREND DROP FURTHER, which means the will of investors do not want the trend go down trend further. However, you will also find out that, EACH TIME OF REBOUNCE, THE RESISTANCE POINT BECOME LOWER EACH TIME. You may study the phenomenon as LOSS OF STRENGTH, even the trade is higher than any trade in September. But, after a period for investors to examine the news and policy of CHINA government, the market atmosphere will gradually calm down, and restart new investment strategy.
But the trend at 17 September 2021 appears a PIERCING LINE PATTERN, which is a signal about the change of trend or bottom signal. If the trend can stand back above 25000 and end with red candle on next Monday or Tuesday (20 – 21Spetember), the trend can be confirmed to turn uptrend and start a new rebounce again. If not, then it might break through the 24580 and find a new low point again.
Suggestion for the HSI market
Since the trend is unknown, OBSERVE THE TREND FOR NEXT MONDAY AND TUESDAY and wait until it has confirmed its trend change to uptrend. If not, consider the down trend will keeps continue.
Keep in mind that the entire trend of HSI is high first and low. If this trend analysis does not change in the future, it means that more lower point will appear in September.
Again, All the prediction above just assumption, and it is not an advise to purchase or sell the share, please be responsible to your own trade behaviour.
Hope all of you may earn more money and be a rich man/woman.
Hang Seng Future (Night) + ADR for 20 September 2021
Closed price = 24784
Advise =Next Monday (20/09) HSI maybe will low open at 24784, but it might be changed on next Monday again.