U.S. Stocks 

Fundamental Analysis: 

The U.S. stock market’s S&P 500 and Nasdaq index closed lower on Tuesday, 24th May 2022, as market concerns that the aggressive moves to curb the highest inflation in decades could tip the U.S. economy into recession have dampened investors’ risk appetite.

All three major U.S. stock indexes recovered some of their losses in late afternoon trading, with the Dow Jones Industrial Average closing higher.

Even so, the S&P 500 was just 2.2% points shy of falling into a bear market since hitting a record on 3rd January 2022.

The data released on Tuesday painted a picture of weakening economic momentum, with new home sales falling sharply and business activity decelerating.

With this, the Dow Jones Industrial Average rose 48.38 points, or 0.15%, to 31,928.62, the S&P 500 fell 32.27 points, or 0.81%, to close at 3,941.48, and the Nasdaq fell 270.83 points, or 2.35%, to 11,264.45.

Technical Analysis: 

(Dow 30, 1-hour chart) 

Execution Insight: 

The Dow focuses on the 32083-line today. If the Dow runs stably above the 32083-line, it will pay attention to the suppression strength of the 32455 and 32781 positions. If the Dow falls below the 32083-line, it will pay attention to the support strength of the 31661 and 31291 positions.

Hong Kong Stocks 

Fundamental Analysis: 

Overnight U.S. stocks diverged as the Nasdaq plunged more than 2% and Chinese stocks fell in general. The Hang Seng TECH Index (HSTECH) opened 0.42% lower, and the Hang Seng Index (HSI) rose slightly by 0.02%.

On the market, Chinese concept stocks that returned to Hong Kong across the board. Bilibili Inc. (9626.HK) fell more than 6%, GDS Holdings Limited (9698.HK) fell more than 4%, NIO Inc. (9866.HK), Li Auto Inc. (2015.HK), Baidu, Inc. (9888.HK), JD.com, Inc. (9618.HK) are down.

Sporting goods stocks, biotechnology stocks, cell phone concept stocks, non-ferrous metal stocks, domestic housing stocks and property management stocks have been lower, with Li Ning Company Limited (2331.HK) again fell 1.8%, reading 3 consecutive losses.

On the other hand, coal stocks to continue the strong market, while home appliances stocks, and Hong Kong banking stocks rose significantly with HSBC Holdings plc (0005.HK) opening over 3% higher.

Technical Analysis: 

(HK50, 1-hour chart) 

Execution Insight: 

HK50 focuses on the 19517-line today. If HK50 can run stably above the 19517-line, then pay attention to the suppression strength of the 20467 and 21450 positions. If the HK50 runs below the 19517-line, then pay attention to the support of the 18606-line.

FTSE China A50 Index 

Technical Analysis: 

(FTSE China A50, 1-hour chart) 

Execution Insight: 

FTSE China A50 focuses on the 13157-line today. If the A50 runs steadily below the 13157-line, it will pay attention to the support strength of the two positions of 12733 and 12328. If the A50 runs above the 13157-line, it will open up further upward space. At that time, pay attention to the two positions of 13496 and 13983.

Risk Disclosure   
Trading in financial instruments involves high risks due to the fluctuation in the value and prices of the underlying financial instruments. Due to the adverse and unpredictable market movements, large losses exceeding the investor’s initial investment could incur within a short period of time. The past performance of a financial instrument is not an indication of its future performance.  Investments in certain services should be made on margin or leverage, where relatively small movements in trading prices may have a disproportionately large impact on the client’s investment and client should therefore be prepared to suffer significant losses when using such trading facilities.   

Please make sure you read and fully understand the trading risks of the respective financial instrument before engaging in any transaction with Doo Prime’s trading platforms. You should seek independent professional advice if you do not understand the any of the risks disclosed by us herein or any risk associated with the trade and investment of financial instruments. Please refer to Doo Prime’s Client Agreement and Risk Disclosure Statement to find out more. 

[Disclaimer]  
This information is addressed to the general public solely for information purposes and should not be taken as investment advice, recommendation, offer, or solicitation to buy or sell any financial instrument. The information displayed herein has been prepared without any reference or consideration to any particular recipient’s investment objectives or financial situation. Any references to the past performance of a financial instrument, index, or a packaged investment product shall not be taken as a reliable indicator of its future performance. Doo Prime and its holding company, affiliates, subsidiaries, associated companies, partners and their respective employees, as well as managers, make no representation or warranties to the information displayed and Doo Prime and its holding company, affiliates, subsidiaries, associated companies, partners and their respective employees, as well as managers, shall not be liable for any direct, indirect, special or consequential loss or damages incurred a result of any inaccuracies or incompleteness of the information provided. Doo Prime and its holding company, affiliates, subsidiaries, associated companies, partners and their respective employees, as well as managers, shall not be liable for any direct, indirect, special or consequential loss or damages incurred as a result of any direct or indirect trading risks, profit, or loss arising from any individual’s or client’s investment.