February 7 $Hang Seng Index (800000.HK)$ Opened at 21,288 points, early trading high at 21,512 points, then fell back to close at 21,298 points, up 76 points for the day, with a turnover of 103.7 billion.
From the perspective of turnover, after three consecutive days of index declines, selling pressure has eased, after all, a sharp drop may lead investors to worry about the stock market seeing a peak and falling back once again.
Prince believes that from a technical perspective, there is a slight chance of the market falling below 0.02 million points in the short term. The main reason is Prince believes that there is currently an opportunity for a weekly head and shoulders bottom formation. If this is true, then the adjustment period from C to D of the head and shoulders bottom should be three months, rather than completing the adjustment in one to two weeks.
The Hang Seng Index had an upward gap on January 5 that has not been filled, ranging between 20,793 and 20,862 points. It is believed that in the coming days, the index will adjust downwards, and investors will see an opportunity to fill this upward gap.
Prince believes that the possibility of filling the gap downwards cannot be ruled out, but personally leans towards the optimistic side. He believes that the Hang Seng Index can stabilize at 21,000 points this week, and with the anticipation of the MPF Market Entry Day, it will rebound upwards (it is expected that the Hang Seng Index can retest the levels of 21,800 to 22,000 points in the short term before making adjustments again).
USA, Germany, France, China, and the Hang Seng Index in China are all above the 250-day moving average. Wang believes that with the gradual easing of global epidemic prevention and control measures, the economy is entering a recovery phase, stepping into a technical bull market.