Technical analysis on $HSI(HSI)$
Trend Structure:
● HSI has been moving within an ascending channel, suggesting an overall uptrend structure remains intact.
● Price action respects the channel boundaries, forming higher lows and higher highs—key characteristics of an uptrend.
Key Resistance Level (21,000):
● The level near 21,000 previously acted as a strong resistance.
● After a breakout, this level turned into a support.
● However, with recent geopolitical tensions (e.g., tariff concerns), HSI has fallen back below this level.
● The breakdown below the 21,000 support-turned-resistance is a short-term bearish signal.
Potential Support at Lower Channel Bound:
● Based on the channel structure, the lower boundary is around 19,400.
● This level may serve as a potential support zone if the downward momentum continues. If price holds above the lower channel support (~19,400), the uptrend remains technically valid.
● A break below the channel would suggest a potential trend reversal.
RSI Indicator:
● The Relative Strength Index (RSI) is currently in oversold territory.
● However, there is no confirmation of a reversal yet (i.e., no upward hook).
● This suggests that while price is oversold, bearish momentum could persist short term.
Using Structured Warrants for Short-Term Trading
1. Trading a Potential Bearish Phase with Put Warrants
● If the trend continues downward, HSI put warrants such as $HSI 19600MBePW250627(JFOW.SI)$ will gain value on further declines.
2. Capturing a Reversal with Call Warrants
● If HSI finds support and rebounds, call warrants such as $HSI 25200MBeCW250627(MMGW.SI)$ will profit from a potential bounce up.
Note: The featured call or put warrant is one of the warrants quoted on tight spreads and high liquidity.
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DISCLAIMER
Information found in Binni Ong commentary is not an offer or solicitation to buy or sell, nor financial advice or recommendation for any investment product. She is providing education and training, and is not regulated by the Monetary Authority of Singapore or any financial regulatory body.
This commentary piece is sponsored by Macquarie Warrants Singapore. The views expressed by Binni Ong do not represent the views of Macquarie Group, nor its affiliates.
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Investment products including warrants are subject to significant investment risks, including the possible loss of the principal amount invested.
Where past performance is referred to, it is not indicative of future performance. Examples quoted in this presentation are for illustration purposes only and do not represent any investment views or strategies. Advice should be sought from a financial adviser regarding the suitability of the investment product before you commit to invest in it.
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