Inverse Head and Shoulders

27 jul 2023

HTI1! The Hang Seng Tech Index has been hovering around the 3700-4000 level for more than 6 months. Currently, the index is trading at 4338 with the nearest resistance at the 4800 level.

Given the boost from the Chinese government, which is considered supportive of local tech companies, it is widely expected that there will be favorable policy rollouts to address the high unemployment rate of Chinese graduates.

Just a short while ago, the Chinese government instructed the banks to bankroll tech companies, and we believe this will further boost the index. Once the resistance level of 4800 is broken, we expect a target of 7000, representing an upside of more than 45%.