Hang Seng Tech: Bulls and bears face off at key support

The downside we were looking for in Hang Seng Tech has played out quickly, with the trade hitting its initial target in less than three days. Price is now sitting at a known support level, creating the opportunity to assess both bullish and bearish setups depending on how it closes the session.

If it can finish above the 50DMA and channel support, longs could be established with a tight stop beneath the uptrend for protection. 5700 is the first obvious target given it’s a big figure, with a push through that improving the odds of a retest of resistance above 5800.

If it closes beneath the 50DMA and channel support, the setup flips. Shorts could be established on the break with a stop above the 50DMA for protection. Downside targets include 5480, 5394, or 5325 — pick the one that best matches your preferred risk-reward profile.

Momentum signals are leaning bearish. RSI (14) has slipped below 50 and continues to trend lower, while MACD has staged a bearish crossover, though it remains in positive territory — more a cautious warning than a definitive bearish tilt.

That said, the broader bias remains bullish with both the 50 and 200DMAs still trending higher despite the recent pullback.

Good luck.
DS