Hang Seng/HK50 cfd Three days in a row have sellers tried to push HSI below the very important support at 17,000. It is both a technical and psychological level. Failed on all three occasions HIS has bounced and could bounce further to the 0.618 retracement at around 17,752, possibly up to the 0.786 retracement just below 18K. The declining 55 Moving Average will provide resistance likely limiting the upside potential.
A close below 17K could fuel renewed sell-off down towards October 2022 lows around 15K medium-term.
It should be noted, however that the RSI is showing divergence indicating the downtrend since August/September is weakening and a larger correction could be seen. But if HSI is closing below 17K the RSI divergence is likely to be cancelled For HSI to reverse the current bearish trend a close above 18,290 is needed