Analysis on Hang Seng Index ( $HSI(HSI)$ )
The Hang Seng Index (HSI) recently broke out of an ascending triangle formation, a pattern that often reflects consolidation followed by potential continuation. The horizontal resistance around 25,800–26,000 was tested several times before a breakout occurred, supported by higher lows that formed the triangle base. The breakout suggests improving market sentiment and potential for further upside if momentum holds.
Trading with DLCs
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Long DLCs: If the index sustains above the breakout zone, long DLCs ( $HSI 5xLongSG261029(CVMW.SI)$ ) are structured to benefit from further upward movement. Traders should note, however, that any failure back below 26,000 may reduce the effectiveness of such instruments.
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Short DLCs: If the breakout proves unsustainable and price falls back below support, short DLCs ( $HSI 7xShortSG270729(LZJW.SI)$ ) can be used to benefit from downward moves or act as a hedge.
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Key Reminder: DLCs are leveraged products designed for short-term trading. They carry daily compounding effects, and losses can be significant, potentially the full capital deployed. Traders should monitor bid-ask spreads, volatility, and ensure risk sizing is appropriate.
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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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