Open an Account
☰
CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 75% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.
Open an Account
✖

Hang Seng Tech Rally Stalls Again Above 5800

By :   David Scutt , Market Analyst
September 2, 2025 4:12 AM
  • Alibaba-driven spike above 5800 fails to hold, sellers step in quickly.
  • 5856 is the key level; a clean close above flips the setup bullish.
  • Pullbacks to 50DMA or channel support present buying opportunities.

Hang Seng Tech Rally Stalls Above 5800

Hang Seng Tech popped above 5800 on Monday, largely on the back of Alibaba. The stock jumped 19% after reporting a strong quarterly profit, with traders focusing on growth in AI-related revenues. That surge helped lift the index, partially offsetting weakness in chipmakers. But the follow-through didn’t stick. Once Alibaba’s spike faded, so did the broader index, highlighting how fragile breakouts above 5800 remain without broader participation. The price action looked unconvincing, mirroring moves earlier in the year on probes above the level.

Another Pullback Incoming?

Source: TradingView

While the broader trend for Hang Seng Tech is undeniably bullish, without a definitive break and close above 5856, near-term directional risks may be skewing lower.

If we were to see another failed push above 5800 on Tuesday, shorts could be established beneath the level with a stop above 5856 for protection. 5700, 5570 and 50-day moving average screen as potential targets, depending on desired risk-reward from the trade.

As mentioned above, the broader trend for the contract is entirely bullish. The price is in an ascending channel with the 50 and 200-day moving averages pushing higher. RSI (14) and MACD are also generating bullish signals, favouring a similar directional bias.

As such, if the contract were to close above 5856, it would generate a bullish setup where longs could be established on the break with a stop beneath the level, targeting 6000, 6150 or 6210—the latter coinciding with 2025 year-to-date high.

Alternatively, if we were to see a pullback to channel support/50DMA and bounce, longs could be established with a stop beneath the support zone for protection against reversal. 5700, 5800 and 5856 screen as potential targets.

The information on this web site is not targeted at the general public of any particular country. It is not intended for distribution to residents in any country where such distribution or use would contravene any local law or regulatory requirement. The information and opinions in this report are for general information use only and are not intended as an offer or solicitation with respect to the purchase or sale of any currency or CFD contract. All opinions and information contained in this report are subject to change without notice. This report has been prepared without regard to the specific investment objectives, financial situation and needs of any particular recipient. Any references to historical price movements or levels is informational based on our analysis and we do not represent or warranty that any such movements or levels are likely to reoccur in the future. While the information contained herein was obtained from sources believed to be reliable, author does not guarantee its accuracy or completeness, nor does author assume any liability for any direct, indirect or consequential loss that may result from the reliance by any person upon any such information or opinions.

Futures, Options on Futures, Foreign Exchange and other leveraged products involves significant risk of loss and is not suitable for all investors. Losses can exceed your deposits. Increasing leverage increases risk. Spot Gold and Silver contracts are not subject to regulation under the U.S. Commodity Exchange Act. Contracts for Difference (CFDs) are not available for US residents. Products and services available depend on your location and the entity holding your account. Before deciding to trade forex, commodity futures, or digital assets, you should carefully consider your financial objectives, level of experience and risk appetite. Any opinions, news, research, analyses, prices or other information contained herein is intended as general information about the subject matter covered and is provided with the understanding that we do not provide any investment, legal, or tax advice. You should consult with appropriate counsel or other advisors on all investment, legal, or tax matters. References to FOREX.com or GAIN Capital refer to StoneX Group Inc. and its subsidiaries. Please read Characteristics and Risks of Standardized Options.

FOREX.com is a registered FCM and RFED with the CFTC and member of the National Futures Association (NFA # 0339826). Forex trading involves significant risk of loss and is not suitable for all investors. Full Disclosures and Risk Warning. Increased leverage increases risk.

GAIN Capital Group LLC (dba FOREX.com) 30 Independence Blvd, Suite 300 (3rd floor), Warren, NJ 07059, USA. GAIN Capital Group LLC is a wholly-owned subsidiary of StoneX Group Inc.

© FOREX.COM 2026