Hang Seng Tech at Crossroads: 4,750 Support in Focus

Hang Seng Tech Index ( $HSTECH(HSTECH)$ ) – Technical Analysis

1. Price Structure

Previous resistance: ~4,850
Recent support: ~4,300
Current price: ~4,755
Price broke above 4,850 but failed to sustain; current daily close is below the breakout zone.

2. Key Observations

The breakout above 4,850 was short-lived and lacked follow-through.
A daily close below 4,750 would signal a failed breakout, increasing the probability of further downside.
RSI remains below 50, suggesting weak bullish momentum and the potential for continued selling pressure.

3. Price Scenarios

Bullish Case: If price stabilises above 4,750 and reclaims 4,850, a further rebound may occur toward higher resistance zones.
Bearish Case: A close below 4,750 confirms the failed breakout. This opens room for price to revisit the 4,300 support area.

Short-term Trading Using DLCs

A. Short-Term Bullish Play (e.g $HSTECH 7xLongSG270331(YPCW.SI)$ )

If price finds support near 4,750 and shows signs of intraday bullish reversal (e.g., bullish candlestick on the 1-hour chart), then a daily long DLC will move up in tandem with a movement in HST.

B. Short-Term Bearish Play (e.g $HSTECH 5xShortSG261105(YVRW.SI)$ )

If price stalls or gets rejected below 4,850, and especially if price action starts to trend lower again intraday, a daily short DLC will profit from a HST movement downwards.
Confirmation: A close below 4,750

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