Hong Kong Index: A Strong Recovery Rally in Early 2026

Published On: 12 Jan 2026, 3:51 PM |Jason Chua Song Jun,  Manager Dealing
Key Entry Price Pivot(s):
  • Around 26,500
Recommended Trade:
  • Long at around 26,500 – 26,600 (near current levels on minor pullback/dip during consolidation)
  • Take Profit at 27,200 (next major resistance zone)
  • Stop Loss at 426,000 (below key support zone; a break here would invalidate the short-term uptrend)
 
Alternative Case
  • Short around 26,800 – 26,900 (near prior peak or if rejection occurs on retest of the January high)
  • Take profit at 26,000 – 26,100 (pullback to recent swing lows/ support)
  • Stop loss at 27,000
 
  • The chart shows clear bullish momentum with the index recovering sharply from the late-December low. Key support at 26,000 has held during recent pullbacks, while resistance near 27,200-27,300 remains the next target for bulls.
  • Momentum indicators favor upside, especially after the breakout above 26,000. However, the pullback after the 26,893 high indicates some overextension/short-term consolidation, so caution is advised around overhead supply.
  • Overall market sentiment remains constructive in early 2026, with the index up significantly year-to-date amid broader Asian recovery themes. 
 
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