To The Moon

Hang Seng Index (HSI) – Broader trend view

The Hang Seng Index ( $HSI(HSI)$ ) has shown a strong rebound off the 25,000 support zone, supported by rising moving averages. The key question now is: what needs to happen for this strength to continue — and will price break above resistance to confirm the next leg up?

• Support currently resides around the key 25,000 level, which previously acted as a resistance and has now turned into a psychological and technical support zone.

• Price action is also being supported by rising moving averages, suggesting the broader uptrend structure is still intact for now.

• Short-term price movement may continue to be guided by the strength of the 25,000 level. A clean hold above this zone may provide opportunities for directional trading, while a break below it could signal caution.

Hang Seng Index (HSI) – Short-Term Triangle Formation

• Price is currently trapped in a triangular consolidation pattern, with the Doji high (~26,136) acting as immediate resistance and 25,000 as key support.

• The Doji candles reflect market indecision, and a break above the Doji high may lead to a move toward the triangle top near 27,000, which then acts as the next resistance.

• Unless price breaks out of this triangle structure, these levels (25,000–27,000) define the short-term trading range.

• The broader structure still holds above 25,000, supported by prior breakout levels and rising moving averages.

Using Structured Warrants for Short-Term Trading

• If the price breaks above the Doji high with strength and volume, investors who expect further strength may look at call warrants (HSI 28600MBeCW260129 ( $HSI 28600MBeCW260129(LXCW.SI)$ )) (https://warrants.com.sg/tools/livematrix/LXCW ) to gain leveraged exposure to short-term upside.

• If resistance holds or a rejection occurs near the Doji high, put warrants (HSI 24200MBePW260129 (LKPW)) (https://warrants.com.sg/tools/livematrix/ $HSI 24200MBePW260129(LKPW.SI)$  ) may be relevant for expressing a bearish short-term view.

Structured warrants are short-term trading instruments that magnify both gains and losses; their value is affected by the underlying price, volatility, and time to expiry.

Note: The featured call or put warrant is one of the warrants quoted on tight spreads and high liquidity. They are also known as trending warrants. 

DISCLAIMER

Information found in Binni Ong commentary is not an offer or solicitation to buy or sell, nor financial advice or recommendation for any investment product. She is providing education and training, and is not regulated by the Monetary Authority of Singapore or any financial regulatory body. 

This commentary piece is sponsored by Macquarie Warrants Singapore. The views expressed by Binni Ong do not represent the views of Macquarie Group, nor its affiliates.

This advertisement has not been reviewed by the Monetary Authority of Singapore.

Investment products including warrants are subject to significant investment risks, including the possible loss of the principal amount invested.

Where past performance is referred to, it is not indicative of future performance. Examples quoted in this presentation are for illustration purposes only and do not represent any investment views or strategies. Advice should be sought from a financial adviser regarding the suitability of the investment product before you commit to invest in it.