Technical Analysis: $HSTECH(HSTECH)$ Index Key Observations:
-
Critical Price Zone (~5,300): The price level around 5,300 has served multiple roles—initially as resistance (Sep 2023), then as support (Mar 2025), and now once again as resistance (May 2025).
-
This phenomenon is significant in technical analysis. When a previous resistance becomes support and flips back to resistance, it reinforces the importance of that level as a strong price barrier where sentiment tends to shift.
-
Potential Head and Shoulders Formation: The chart outlines a possible head and shoulders pattern forming just below the 5,300 resistance zone.
This pattern is commonly viewed as a potential reversal setup. If the neckline (near 5,150) breaks, it may signal a continuation of the downtrend.
-
However, until confirmed by a neckline break, the pattern remains a setup in progress — not a completed signal.
DLC Usage for Short-Term Trading
Traders monitoring short-term movements of the Hang Seng Tech Index may consider using Daily Leverage Certificates (DLCs) as one of the tools to express your market view.
-
If the index were to break above the 5,300 resistance level with momentum, traders may look at long DLCs (e.g. $HSTECH 7xLongSG270331(YPCW.SI)$ ), which are structured to reflect amplified returns when the underlying moves higher.
-
Conversely, if the head and shoulders pattern completes and price breaks below key support levels, short DLCs (e.g. $HSTECH 5xShortSG261105(YVRW.SI)$ ) —which are designed to move in the opposite direction of the underlying—may reflect those movements.
It is important to note that DLCs carry leverage and are intended for short-term trading. Traders should be aware of the associated risks and monitor market conditions closely.
Hit the follow button to stay updated! I post valuable trading and investing insights every week—don’t miss out on being the first to know!
For more information about DLCs, visit https://dlc.socgen.com/en/education/handbook
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.
Comments
1. Casual & Engaging
Great breakdown! That 5,300 zone really is acting like a magnet — classic support-turns-resistance setup.
The head and shoulders pattern looks legit too. If 5,150 gives way, we could see some decent downside. But if bulls push past 5,300 with volume, I’m definitely watching for a strong breakout.
DLCs can definitely spice up the short-term game — just gotta respect the risk and act quick.
2. Bullish Lean
Nice chart insights! That 5,300 level looks tough, but a clean break above it with strong volume could invalidate the head and shoulders setup.
I’d be eyeing long DLCs in that scenario — especially with tech showing signs of recovery. Timing and confirmation are key.
3. Cautious & Risk-Aware
Well analyzed. The 5,300 level has clearly been tested from both sides, and the potential head and shoulders pattern below it is something to watch.
If the neckline near 5,150 breaks, that could signal more downside. With leveraged DLCs, it’s important to stay disciplined and manage risk tightly in this kind of setup.