Watch HSI: Breakout May Signal 3,500-Point Upside

Binni Ong
06-25

Hang Seng Index ( $HSI(HSI)$ )

  • Bullish Pattern: A clear Cup and Handle pattern has formed, typically a continuation signal suggesting a potential upside breakout.

  • Resistance Zone: The neckline is near 24,875, acting as the breakout level.

  • Momentum: Price is trading above all major moving averages, and RSI is rising towards 70, signalling strong bullish momentum.

Measured Move Target (Cup & Handle Projection)

  • Cup Depth: ~24,875 (resistance) – ~21,300 (bottom) = 3,575 points

  • Breakout Target: 24,875 + 3,575 = ~28,450

If HSI breaks above 24,875 with volume confirmation, a move towards 28,450 could be anticipated

Using DLCs for Short-Term Trading on HSI

  • Daily Leverage Certificates (DLCs) allow traders to gain short-term leveraged exposure to the Hang Seng Index (HSI).

  • If HSI breaks above 24,875, bullish DLCs (e.g. $HSI 7xLongSG251216(RQGW.SI)$ ) may offer a way to capture upside momentum in the short term.

  • If HSI gets rejected at resistance, bearish DLCs (e.g. $HSI 5xShortSG280330(WIEW.SI)$ ) may be used to express a tactical view on potential pullbacks.

  • DLCs are meant for short-term trading only and are not suitable for long-term holding due to compounding effects.

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For more information about DLCs, visit https://dlc.socgen.com/en/education/handbook 

Disclaimer: 

This document is not an offer or solicitation to buy or sell, nor financial advice or recommendation for any investment product. This document has been published for general circulation only. 

This advertisement has not been reviewed by the Monetary Authority of Singapore. This post is sponsored by Societe Generale, Singapore Branch. The content of this article does not form part of any offer or invitation to buy or sell any daily leverage certificates (the “DLCs”), and nothing herein should be considered as financial advice or recommendation. The price may rise and fall in value rapidly and holders may lose all of their investment. Any past performance is not indicative of future performance. Investments in DLCs carry significant risks, please see dlc.socgen.com for further information and relevant risks. The DLCs are for specified investment products (SIP) qualified investors only.

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Comment（1）

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  • ywl555
    ·06-27
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    But we are at a strong resistance level for the HSI right now... and there is a double top pattern on the HSI indicating that the short term direction is downwards.
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