gmaster29

China Hang Seng Index - Bleeding closer to stop at 22200 - 22500

Long
HSI:HSI   Hang Seng Index
2021 has been insanely a difficult year of US investors invested in Chinese stocks due to the uncertainty revolving around the Tech crackdown, stock delisting, etc.. While the US and India market have been on hyper bull run, Chinese stock holders have lost more than 50-90% of their investment. Example, BABA is more than 60% down, education stocks GOTU & TAL are 95% down. Lot folks are nervous, holding bags with deep losses, staring at uncertainty. I have some good news for them, the bleeding is going to stop in next 2-4 months. I have gone all the way back to 1999 chart, looking at the major crashes. There's a strong support trend line that connects all these bottoms, the next one is pretty close. HSI should bottom out around 22200-22500 and then pick up for another massive bull run. Money will flow out of US markets to China, as the Fed tightens the policy and start raising interest rates. Chinese stocks are dead cheap now, and might drop a littler further, but long investors can start accumulating the good quality companies like BABA, BIDU , JD , etc.. Risk vs Reward ratio is very high.
CMP - 23618 , short term target 22500 - 22200 , long term target breach ATH in 2-3 years.
Trade closed: target reached: HSI breached my target 22500, it was down to 22406 yesterday. It's a good time to start buying some good Chinese equities for long term portfolio, which could give 4x to 5x in next 4 to 5 years. I won't be surprised if HSI pulls down a little bit further to 22200 level short term.
Trade closed: target reached: 22200 reached and further breached 21000 support at COVID lows. It's in oversold zone, good to accumulate the good quality Chinese equities as the price drops. Strong support at 18278, if market further sells off.

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