HSTECH was listed at $1.33 in 2021. In the four-year weekly chart, prices have broken out of an almost two-year base formation at 86 cents, indicating an eventual upside of $1.22.
The top six stocks by weightage in the Hang Seng Tech Index are Xiaomi, JD.com, Alibaba, Tencent, SMIC and Meituan. Chinese tech stocks have been on a tear since news that DeepSeek had been able to achieve more than US peers with less power and less advanced chips.
Car crash?
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Elsewhere, Tesla has had something of a car crash. It has fallen from US$488.24 to US$263.45 almost 46% since December 2024.
It appears that prices have fallen to a support area which may — whether people like it or not — cause the decline to stop. Whether prices can rebound or just stage a dead cat bounce remains to be seen.
Since short-term indicators are at the low end of their range, prices can rebound. However, the chart pattern is inherently weak, a downtrend is underway and any rebound is likely to be temporary.
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Support is at US$260. A break below this level would see prices moving to $160. The chart pattern could be an early sign of fundamental weakening.
