Hang Seng Index Chart Analysis

This week saw a continuation of the downtrend from the previous week.
One good reason would be the heightened U.S – China tension.The relationship between the two largest economies continues to worsen as China ordered the U.S to close its consulate in Chengdu as a tit for tat for the U.S closure of its Houston consulate.
Investors’ sentiment is that the tension would likely continue to worsen.
To make things worse, there is a decrease in investors’ risk appetite. This is mainly due to doubts over the economic recovery as COVID numbers continue to increase. Additionally, the unemployment data released also came out better than the market expectations.
With price currently around support level, would the market rebound or continue in its downtrend? The key level to look out for would be around 24,300.

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