Earnings reports from Chinese giants raise concerns! Is it a good time to buy on dips？
The buy signal for the Hang Seng Index diverges from the weak market pattern, as the market faces a directional decision.
Previous day (March 26th) $Hang Seng Index (800000.HK)$
General decline nearing the lower part of the range. Key blue chips show clear divergence; oversold stocks display buy signals while strong stocks flash warnings; short-term outlook is neutral.
We 【Hong Kong Stock Report】March 26 [HK Stocks Podcast] Part 1 - Hang Seng Index, HSBC, CNOOCIn yesterday’s review of the Hang Seng Index: it closed at 24,856.43 points, still within the recent obvious range of 24,203.54 to 27,325.98 points, with an overall range fluctuation of approximately 12.9%. At current levels, the index is close to the lower half of the range, reflecting that the market has not fully recovered after the previous pullback. Immediate support is seen around 24,200 points, which is very close to the recent low. If this level fails again, it indicates selling pressure remains undigested. Resistance above is seen at 25,000 to 25,200 points; if the index can stabilize above this, there may be opportunities to test 25,500 points repeatedly. As of now, the index is still operating in a weak range and has not yet broken away from the downward trend. $HSBC HOLDINGS (00005.HK)$$CNOOC (00883.HK)$
From a technical structure perspective, the moving averages continue to point downwards, indicating that the medium- and short-term trends have not reversed, and the rebound can only be regarded as a technical recovery within a weak trend. The closing price of 24,856.43 points is below MA10 (25,362.69 points), MA30 (25,979.5 points), and MA60 (26,333.12 points), confirming the persistent weak pattern.
![Previous day (March 26th) $Hang Seng Index (800000.HK)$ General decline nearing the lower part of the range. Key blue chips show clear divergence; oversold stocks display buy signals while strong stocks flash warnings; short-term outlook is neutral. We 【Hong Kong Stock Report】[Share Link: March 26 [HK Stocks Podcast] Part 1 - Hang Seng Index, HSBC, CNOOC]In yesterday’s review of the Hang Seng Index: it closed at 24,856.43 points, still within the recent obvious range of 24,203.54 to 27,325.98 points, with an overall range fluctuation of approximately 12.9%. At current levels, the index is close to the lower half of the range, reflecting that the market has not fully recovered after the previous pullback. Immediate support is seen around 24,200 points, which is very close to the recent low. If this level fails again, it indicates selling pressure remains undigested. Resistance above is seen at 25,000 to 25,200 points; if the index can stabilize above this, there may be opportunities to test 25,500 points repeatedly. As of now, the index is still operating in a weak range and has not yet broken away from the downward trend. $HSBC HOLDINGS (00005.HK)$$CNOOC (00883.HK)$ From a technical structure perspective, the moving averages continue to point downwards, indicating that the medium- and short-term trends have not reversed, and the rebound can only be regarded as a technical recovery within a weak trend. The closing price of 24,856.43 points is below MA10 (25,362.69 points), MA30 (25,979.5 points), and MA60 (26,333...](https://nnqimage.futunn.com/sns_client_feed/1162342/20260327/web-1774572691920-cTsNVZUmbB.png/big?area=1&is_public=true&imageMogr2/ignore-error/1/format/webp)
In terms of momentum indicators, the RSI is at 41, which is in the weaker region, showing insufficient market support and caution from investors regarding upward price pursuit. The Bollinger Bands show signs of narrowing, with prices close to the lower band, indicating that although the index has fallen near the short-term weak area, no clear strengthening signal has emerged yet, leaving only the possibility of a short-term technical rebound.
Key Observation: The Hang Seng Index fell 1.89% the previous day, with a turnover of HKD 261.662 billion. Technical indicators gave a 'buy' signal (strength 8), suggesting the potential for bottoming after a short-term oversold condition, but it needs to hold above the 24,200-point threshold.
![Previous day (March 26th) $Hang Seng Index (800000.HK)$ General decline nearing the lower part of the range. Key blue chips show clear divergence; oversold stocks display buy signals while strong stocks flash warnings; short-term outlook is neutral. We 【Hong Kong Stock Report】[Share Link: March 26 [HK Stocks Podcast] Part 1 - Hang Seng Index, HSBC, CNOOC]In yesterday’s review of the Hang Seng Index: it closed at 24,856.43 points, still within the recent obvious range of 24,203.54 to 27,325.98 points, with an overall range fluctuation of approximately 12.9%. At current levels, the index is close to the lower half of the range, reflecting that the market has not fully recovered after the previous pullback. Immediate support is seen around 24,200 points, which is very close to the recent low. If this level fails again, it indicates selling pressure remains undigested. Resistance above is seen at 25,000 to 25,200 points; if the index can stabilize above this, there may be opportunities to test 25,500 points repeatedly. As of now, the index is still operating in a weak range and has not yet broken away from the downward trend. $HSBC HOLDINGS (00005.HK)$$CNOOC (00883.HK)$ From a technical structure perspective, the moving averages continue to point downwards, indicating that the medium- and short-term trends have not reversed, and the rebound can only be regarded as a technical recovery within a weak trend. The closing price of 24,856.43 points is below MA10 (25,362.69 points), MA30 (25,979.5 points), and MA60 (26,333...](https://nnqimage.futunn.com/sns_client_feed/1162342/20260327/web-1774572708885-KgbA0x4fcU.png/big?area=1&is_public=true&imageMogr2/ignore-error/1/format/webp)
The Hang Seng Index is currently in a weak range, with the 24,200 to 25,000-point area being a key short-term zone. Investors should focus on the support and breakout situation within this range.
On March 26, most of the key blue chips fell, except for $AIA (01299.HK)$ slightly up, $CHINA MOBILE (00941.HK)$ flat closing, with technical signals showing significant divergence. A brief analysis of selected core stocks follows:
1、 $TENCENT (00700.HK)$ : Closed at HKD 495.6 (down 1.96%), below all major moving averages, RSI at 35 (near oversold), buy signal (strength 11), with rebound momentum building after being oversold.
2、 $BABA-W (09988.HK)$ : Closed at HKD 123.0 (down 4.58%), below all major moving averages, RSI at 36 (near oversold), buy signal (strength 9), conditions for a rebound have accumulated.
3、 $MEITUAN-W (03690.HK)$ : Closed at HKD 86.7 (down 3.67%), above MA10 and MA30 but below MA60, RSI at 62 (neutral to slightly strong), sell signal (strength 9), profit-taking pressure is evident.
4, AIA (01299): Closed at HKD 87.0 (up 0.23%), above all major moving averages, RSI at 56 (neutral to slightly strong), neutral signal (strength 8), may need short-term adjustment.
5、 $PING AN (02318.HK)$ : Closed at HKD 58.15 (down 3.80%), below all major moving averages, RSI at 35 (approaching oversold), buy signal (strength 8), technical rebound expected.
Overall observation: Oversold blue chips like Tencent, Alibaba, and Ping An are showing buy signals, $MEITUAN-W (03690.HK)$ 、 $CCB (00939.HK)$ while previously strong stocks are showing sell signals, indicating significant divergence within the blue chips.
Warrant review and selection: Be cautious with Hang Seng Index-related products
First, let’s review the performance of the Hang Seng Index warrant bull/bear products recommended earlier: The HSI-related products recommended on March 24 saw good gains, where $UB#HSI RP28125.P (60799.HK)$ 、 $BI#HSI RP2804L.P (61183.HK)$ the increase reached 21% after 2 days, $JP-HSI @EP2605A.P (22976.HK)$ and the increase was 16% after 2 days, in line with the HSI movement that day.
![Previous day (March 26th) $Hang Seng Index (800000.HK)$ General decline nearing the lower part of the range. Key blue chips show clear divergence; oversold stocks display buy signals while strong stocks flash warnings; short-term outlook is neutral. We 【Hong Kong Stock Report】[Share Link: March 26 [HK Stocks Podcast] Part 1 - Hang Seng Index, HSBC, CNOOC]In yesterday’s review of the Hang Seng Index: it closed at 24,856.43 points, still within the recent obvious range of 24,203.54 to 27,325.98 points, with an overall range fluctuation of approximately 12.9%. At current levels, the index is close to the lower half of the range, reflecting that the market has not fully recovered after the previous pullback. Immediate support is seen around 24,200 points, which is very close to the recent low. If this level fails again, it indicates selling pressure remains undigested. Resistance above is seen at 25,000 to 25,200 points; if the index can stabilize above this, there may be opportunities to test 25,500 points repeatedly. As of now, the index is still operating in a weak range and has not yet broken away from the downward trend. $HSBC HOLDINGS (00005.HK)$$CNOOC (00883.HK)$ From a technical structure perspective, the moving averages continue to point downwards, indicating that the medium- and short-term trends have not reversed, and the rebound can only be regarded as a technical recovery within a weak trend. The closing price of 24,856.43 points is below MA10 (25,362.69 points), MA30 (25,979.5 points), and MA60 (26,333...](https://nnqimage.futunn.com/sns_client_feed/1162342/20260327/web-1774572808649-1oo41JTRGp.png/big?area=1&is_public=true&imageMogr2/ignore-error/1/format/webp)
Here are two more selected HSI-related warrant products for your reference:
First one: $BP-HSI @EC2605A.C (23939.HK)$ with a leverage of 17.3, strike price at 26,600, lowest premium and implied volatility, suitable for investors optimistic about a short-term rebound in the HSI.
Second one: $JP#HSI RP2812K.P (60547.HK)$ with a leverage of 22.8, recovery price at 25,780, high actual leverage and low premium, suitable for investors concerned about further adjustments in the HSI.
![Previous day (March 26th) $Hang Seng Index (800000.HK)$ General decline nearing the lower part of the range. Key blue chips show clear divergence; oversold stocks display buy signals while strong stocks flash warnings; short-term outlook is neutral. We 【Hong Kong Stock Report】[Share Link: March 26 [HK Stocks Podcast] Part 1 - Hang Seng Index, HSBC, CNOOC]In yesterday’s review of the Hang Seng Index: it closed at 24,856.43 points, still within the recent obvious range of 24,203.54 to 27,325.98 points, with an overall range fluctuation of approximately 12.9%. At current levels, the index is close to the lower half of the range, reflecting that the market has not fully recovered after the previous pullback. Immediate support is seen around 24,200 points, which is very close to the recent low. If this level fails again, it indicates selling pressure remains undigested. Resistance above is seen at 25,000 to 25,200 points; if the index can stabilize above this, there may be opportunities to test 25,500 points repeatedly. As of now, the index is still operating in a weak range and has not yet broken away from the downward trend. $HSBC HOLDINGS (00005.HK)$$CNOOC (00883.HK)$ From a technical structure perspective, the moving averages continue to point downwards, indicating that the medium- and short-term trends have not reversed, and the rebound can only be regarded as a technical recovery within a weak trend. The closing price of 24,856.43 points is below MA10 (25,362.69 points), MA30 (25,979.5 points), and MA60 (26,333...](https://nnqimage.futunn.com/sns_client_feed/1162342/20260327/web-1774572795683-p4GvnNQH7A.png/big?area=1&is_public=true&imageMogr2/ignore-error/1/format/webp)
![Previous day (March 26th) $Hang Seng Index (800000.HK)$ General decline nearing the lower part of the range. Key blue chips show clear divergence; oversold stocks display buy signals while strong stocks flash warnings; short-term outlook is neutral. We 【Hong Kong Stock Report】[Share Link: March 26 [HK Stocks Podcast] Part 1 - Hang Seng Index, HSBC, CNOOC]In yesterday’s review of the Hang Seng Index: it closed at 24,856.43 points, still within the recent obvious range of 24,203.54 to 27,325.98 points, with an overall range fluctuation of approximately 12.9%. At current levels, the index is close to the lower half of the range, reflecting that the market has not fully recovered after the previous pullback. Immediate support is seen around 24,200 points, which is very close to the recent low. If this level fails again, it indicates selling pressure remains undigested. Resistance above is seen at 25,000 to 25,200 points; if the index can stabilize above this, there may be opportunities to test 25,500 points repeatedly. As of now, the index is still operating in a weak range and has not yet broken away from the downward trend. $HSBC HOLDINGS (00005.HK)$$CNOOC (00883.HK)$ From a technical structure perspective, the moving averages continue to point downwards, indicating that the medium- and short-term trends have not reversed, and the rebound can only be regarded as a technical recovery within a weak trend. The closing price of 24,856.43 points is below MA10 (25,362.69 points), MA30 (25,979.5 points), and MA60 (26,333...](https://nnqimage.futunn.com/sns_client_feed/1162342/20260327/web-1774572795678-IJWbP8OuWQ.png/big?area=1&is_public=true&imageMogr2/ignore-error/1/format/webp)
Risk Warning: The leverage of Hang Seng Index (HSI) warrants is generally high, whether for call or put options. Always remember to set stop-loss and act within your means.
The divergence between the 'Buy Signal' and 'Weak Trend' of the HSI — which side do you believe in?
A. The signal takes precedence; follow the buy signal to bet on a rebound.
B. Trend is key; continue to wait as the downtrend remains unchanged.
C. Wait for a drop below 24,200 to confirm weakness.
D. Wait for a rise above 25,000 to confirm strength.
Feel free to share your insights in the comment section. For more market analysis, please continue following ‘Hong Kong Stock Warrants Jenny’ for daily updates!
Reminder: This article does not constitute any investment advice.
This article is for reference only and does not constitute any investment advice. The market data, opinions, and analysis contained herein may change at any time without prior notice. We are not responsible for any loss or damage caused by reliance on the information in this article. Technical analysis only shows whether certain technical conditions are met; a comprehensive assessment of asset performance should be conducted using additional data. Decisions to trade should not be based solely on this article. Please note that past performance is not indicative of future results.
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