Hang Seng Index: What the Latest Correction Says About Market Strength

Introduction – $HSI(HSI)$ recent selling pressure in context

• The Hang Seng Index experienced a pullback during the Sep–Nov 2025 period, with the decline limited to less than 10%.

• This contrasts with earlier corrections in 2024 and early 2025, which were deeper (over 15%) and longer in duration, suggesting recent selling pressure has been more measured and controlled.

Comparison with prior corrections

• Previous downturns saw sharper drawdowns and more aggressive follow-through selling.

• The latest correction was relatively shallower and shorter, indicating reduced downside momentum.

Pattern and price behaviour

• Price had broken out of an ascending triangle, a pattern where higher lows press against a relatively flat resistance, often reflecting building buying pressure.

• The current pullback has retested the breakout level, and prices showed rejection near that zone, suggesting some degree of underlying price strength.

Key levels to watch

• Support: 26,200–26,400, a zone where buyers previously stepped in.

• Immediate resistance: Around 28,000, which remains the next key level for further upside confirmation.

Momentum indicator (RSI)

• RSI is near 40, indicating the market is approaching a mildly oversold condition.

• This does not signal an immediate rebound, but it suggests downside momentum may be easing rather than accelerating.

Using Structured Warrants for Short-Term Trading

• If the price pullback towards the possible supports of 26200-26400 and shows bullish price actions, call warrants (HSI 29200MBeCW260330 ( $HSI 29200MBeCW260330(ROSW.SI)$ )) (https://warrants.com.sg/tools/livematrix/ROSW) may be relevant for expressing a bullish short-term view.

• If the price fails to break above 28,000 and shows bearish price action instead, put warrants (HSI 24200MBePW260330 ( $HSI 24200MBePW260330(YKNW.SI)$ )) (https://warrants.com.sg/tools/livematrix/YKNW ) may be relevant for expressing a bearish short-term view.

• Structured warrants are short-term trading instruments that magnify both gains and losses; their value is affected by the underlying price, volatility, and time to expiry. Note: The featured call or put warrant is one of the warrants quoted on tight spreads and high liquidity. They are also known as trending warrants. 

DISCLAIMER

Information found in Binni Ong commentary is not an offer or solicitation to buy or sell, nor financial advice or recommendation for any investment product. She is providing education and training, and is not regulated by the Monetary Authority of Singapore or any financial regulatory body. 

This commentary piece is sponsored by Macquarie Warrants Singapore. The views expressed by Binni Ong do not represent the views of Macquarie Group, nor its affiliates.

This advertisement has not been reviewed by the Monetary Authority of Singapore.

Investment products including warrants are subject to significant investment risks, including the possible loss of the principal amount invested.

Where past performance is referred to, it is not indicative of future performance. Examples quoted in this presentation are for illustration purposes only and do not represent any investment views or strategies. Advice should be sought from a financial adviser regarding the suitability of the investment product before you commit to invest in it.