Hello, Cryptoworld!
In this post, I want to share my thoughts on the HS-Index, which has been rallying since January and likely peaked three days ago at over 23,000 points (23,100).
Today, February 20, the HSI is retracing to the 22,000 area. At noon, it stands at 22,627.51, indicating a possible lateralization as February comes to an end. Let’s see how it performs during the next week, the last week of February 2025.
The previous rally occurred from September to October 2024, reaching a level of 23,233 points, which is a critical level to monitor.
In the meantime, investors need to exercise caution as market conditions remain volatile. Analysts have mixed views on the short-term outlook; some see value at current levels, while others remain cautious. The long-term outlook largely depends on China's economic trajectory and global market conditions.
On another note, here are some critical technical aspects to watch: Moving Averages and RSI.
Moving Averages:
The 50-day and 200-day moving averages can serve as dynamic support and resistance levels. If the HSI approaches the 23,000 resistance and holds below it while the moving averages trend upwards, this may indicate potential bullish momentum if it breaks through.
Relative Strength Index (RSI):
The RSI can help assess whether the HSI is overbought or oversold. An RSI above 70 near the 23,000 resistance could suggest that the index is overbought and may struggle to rise further, while an RSI below 30 near the 20,000 support could indicate oversold conditions, potentially signaling a buying opportunity.
Investing for the Long Term
Long-Term Holding:
For investors with a long-term outlook, consider holding positions through short-term volatility, especially if you believe in the index's fundamental growth. The rationale behind this is that long-term investments can benefit from potential future growth, especially if the index is expected to rise over time.
Final note: HS-Index price at the moment of this post is 22,754.38 points.
That’s all for now.
Thank you for your support and for following!