Published on: December 29, 2023
Happy New Year to all the readers of Definedge Securities.
The 2023 ends on a positive note for D-Street as well as Wallstreet. The Nifty and Sensex gains ~20% and ~19%, respectively, while the Dow Jones gains ~13% and DAX ~20%.
As per Yin-Yang, there is something negative in everything positive and vice-versa. Amid the positive global equities, one benchmark index that ends in negative or red is Hang Seng losing ~14%.
The Hang Seng trades at levels comparable to those seen in 2020, 2009, and even as far back as 2000. This starkly contrasts the Indian markets, which have surged to unprecedented highs, leaving many investors wondering about the future trajectory of the Hang Seng.
As we step into 2024, the Chinese zodiac heralds the Year of the Dragon. Those born under this sign possess charismatic, intelligent, confident, and powerful traits. They are considered naturally lucky and gifted, approaching everything with high standards and a commitment to excellence. Could the auspicious Year of the Dragon bring a positive turn for Hang Seng in 2024?
A retrospective analysis of previous Dragon years for Hang Seng reveals varied performances: a remarkable +17% in 1988, a challenging -11% in 2000, and a substantial +23% in 2012. The question on many minds now is whether 2024 will add to the positive tally.
The debate on astrology’s role in financial markets is as old as the markets themselves. While some swear by the celestial alignments and their impact on investments, others remain staunchly skeptical. I don’t believe in it but acknowledge the role of luck in trading and investing. However, relying solely on luck can be precarious. I base my decisions on a combination of thorough analysis and market insights.
Being a reversal trader and a follower of Harmonics Trading Patters, a method of identifying price patterns based on Fibonacci levels, has gained popularity. The bullish harmonics, particularly the Bullish Gartley is visible on the weekly chart of HangSeng Bees.
HangSeng Bees ETF, Weekly Chart
Source: TradePoint
The Bullish Gartley pattern, visible on the weekly chart of HangSeng Bees (an ETF tracking the Hang Seng Index), signals a potential reversal. This pattern emerges after a significant ~30% decline from the 2023 peak, hinting at a possible upward trend in the offing.
HangSeng Bees ETF, Daily Chart
Source: TradePoint
Zooming in on the daily Heikin Ashi chart, we observe the HangSeng Bees trading within an ascending triangle pattern. The presence of a series of bullish Heikin Ashi candles adds weight to the potential bullish reversal.
For Definedge Securities clients, seizing this opportunity is straightforward – direct investment in HangSeng Bees (ticker: HNGSNGBEES) is the route to consider.
Intriguingly, the symbolism of dragons in Chinese culture aligns with positive attributes – great power, good luck, and strength. As we anticipate the unfolding of 2024, could this dragon symbolism bring a wave of positivity to Hang Seng?
