Hang Seng possible buy ?

/ The instrument (HK) is available for trading on the Varchev Absolute Trader platform. The article is not a trade recommendation. /

The Chinese Central Bank remains in an expansionary mode unlike other banks in developed economies. Inflation in China is currently at a steady low level of around 2.2% year-on-year and improvements in macro data since the reopening suggest that growth will pick up even before the second half of this year.
This makes China one of the most promising areas. for invested and capital flows from recent months are at record levels.

Short Term Market Profile

The market profile of the last 30 days shows strengthening volumes in the lower border of the Value area (20400 – 20600). This implies a more difficult passage through the zone and is a potential support.

Technical Drawing

Golden cross signal confirming the up trend. Strong price action reverse with increased volumes from 200MA, 38.2% fibo and the local support zone (19200 – 19600). There are prerequisites for the end of the downward correction and my expectations are for the development of a medium-term upward wave with a potential first target in the resistance zone (22500 – 23000) and a second longer-term 25000 – 25500.

Conclusion: A buy on a pullback around the zone (20000 – 20300) will provide a good opportunity to position in the direction of the current trend with a potential first target resistance zone (22500 – 23000)

Alternative scenario:

A return and close on a daily basis below the local support zone and 200MA will mean the potential development of another downward wave. Stop loss for long is below the local support zone and 200MA, measured against the size of the margin account.