Hang Seng Tech: 5800 proves trickyHang Seng Tech continues to struggle above 5800, reversing lower after another failed probe above the level on Monday, mirroring price action seen earlier this year. While the broader trend is undeniably bullish, without a definitive break and close above 5856, near-term directional risks may be lower.
If we were to see another failed push above 5800 on Tuesday, shorts could be established beneath the level with a stop above 5856 for protection. 5700, 5570 and 50-day moving average screen as potential targets, depending on desired risk-reward from the trade.
As mentioned above, the broader trend for the contract is entirely bullish. The price is in an ascending channel with the 50 and 200-day moving averages pushing higher. RSI (14) and MACD are also generating bullish signals, favouring a similar directional bias.
As such, if the contract were to close above 5856, it would generate a bullish setup where longs could be established on the break with a stop beneath the level, targeting 6000, 6150 or 6210—the latter coinciding with 2025 year-to-date high.
Alternatively, if we were to see a pullback to channel support/50DMA and bounce, longs could be established with a stop beneath the support zone for protection against reversal. 5700, 5800 and 5856 screen as potential targets.
Good luck!
DS
