In today's analysis, Ultima Markets shares a detailed technical outlook on HKTECH. Let's dive in.

After a sharp decline that found footing near 5250, the index printed a bullish engulfing-style candle followed by a period of stabilisation. This suggests short-term support has formed. However, the earlier breakdown below 5478 remains technically significant. Price is now retesting this former support zone, which may act as resistance. The 5480 - 5520 range is critical where failure to reclaim this area would validate the prior breakdown and reinforce medium-term downside risk.

Resistance

The primary resistance lies between 5480 and 5530, a strong confluence area where the breakdown level aligns with the descending Purple Moving Average. A sustained move above this zone would expose 5690, where the Black Moving Average stands as the next upside barrier. Beyond that, 5890 marks January's swing high. A break above this level would structurally shift the trend back to bullish.

Support

Initial support is seen at 5360, reflecting recent consolidation lows. Below that, 5250 represents the recent swing low in which a decisive break would invalidate the current rebound and signal renewed downside momentum. The 5000 level remains a broader psychological support beneath the current range.

On the H2 timeframe, price is consolidating near the pivotal 5475 - 5480 region. The short-term bias remains cautiously constructive as long as price holds above the Purple Moving Average near 5440. A clear move above 5480 could accelerate momentum towards 5580, while a rejection followed by a break below 5440 would tilt the balance in favour of sellers.

Breakout Scenarios

A bullish breakout requires a firm H2 above 5500, potentially triggering short covering and opening the path towards 5580. Conversely, a failure near 5480 followed by a drop beneath 5430 would suggest the rebound was corrective in nature, with downside targets around 5350 and possibly 5260.

On the M30 chart, upward pressure remains intact but shows early signs of fatigue. The current pullback appears orderly rather than aggressive. A constructive retracement toward 5450 could provide renewed buying opportunities if supported by price action confirmation. A decisive close above 5500 would signal continuation higher.

Dip Buy Scenario

A test of the 5440 - 5450 zone combined with bullish reversal patterns and improving momentum indicators would favour a push towards 5500 and 5518.

Bearish Breakdown

A 30-minute close below 5445 would break the short-term structure and likely expose 5420, with potential extension towards 5390.

Immediate Breakout

A clean close above 5500 would invalidate short-term weakness and retarget the recent wick high at 5518.

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