The Hang Seng Index dropped and moved below a crucial support level on Thursday as Chinese technology stocks plunged. It retreated to a low of H$23,988, its lowest level since July 2025. It has moved into a technical correction after falling by over 14% from its highest point this year.
Hang Seng Index slumps as tech sell-off continues
The Hang Seng Index has been in a strong sell-off in the past few days, a trend that has escalated amid the ongoing technology sell-off in the United States.
have held steady in the past few days. Brent, the global benchmark, rose to $94.7, while the West Texas Intermediate (WTI) rose to $92.
The Hang Seng Index is also slipping as market participants react to the potential for interest rate hikes by the Federal Reserve as US inflation jumps. A report released on Wednesday showed that the US consumer inflation jumped to 4.2%.
Hang Seng Index technical analysis
Hang Seng Index chart | Source: TradingView
The daily chart reveals that the Hang Seng Index has slumped in the past few months, moving from a high of H$28,040 in January to a low of H$24,000. It has dropped slightly below the crucial support level at H$24,200, its lowest point on March 23rd.
Most notably, the index is about to form a death cross pattern as the spread between the 50-day and 200-day Exponential Moving Averages (EMA) narrow. This pattern is one of the riskiest ones in technical analysis.
Therefore, the most likely Hang Seng Index forecast is bearish, with the next key level to watch being at H$23,180, its lowest point on June 20th.
