Basic overview
The Chinese Politburo name
that it will adopt a “moderately loose” monetary policy strategy for 2025, which marked the first major change in stance since 2011.
In addition, the language surrounding fiscal policy was upgraded to “more proactive” from just “proactive” in another sign that Chinese officials intend to ease policies more forcefully to stimulate the economy.
The market will now expect significant rate cuts and asset purchases, which should support the stock market going forward.
Hang Seng Index Technical Analysis – Daily Time Chart
Hang an index every day
On the daily chart, we can see that the Hang Seng broke above a down level line of motion
that explained the bearish trend in this timeframe. The buyers picked up on the news and are aiming for a new cycle high. On the other hand, the sellers will want to see the move fail and the price fall back below the 19731 level to target the 18203 level next.
Hang Seng Index Technical Analysis – 4 hour timeframe
Croch Seng Index 4 hours
On the 4 o'clock chart, we can see that we now have a small uptrend defining the trend at this time frame. If we had to pull back into it, we can expect the buyers to continue the trend to set up for a rally into the 21342 level next. The sellers, on the other hand, will be looking for a lower break to initiate a position to fall into the 18203 level.
Hang Seng Index Technical Analysis – 1 hour timeframe
Croch Seng Index 1 hour
On the 1 hour chart, we see that the price rose above the top of the average daily range for today already as the buyers piled in strongly on the news. Of course, when there are so many surprises, the price can run very high. The best time to enter the market was actually on the news as the support movement could increase now and not provide any technical entry. We may see new highs during the Asian session.
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