Could the US blue wave give Chinese tech a boost?Hong Kong Tech Index CFDFOREXCOM:HSTECHFOREXcomCould the prospect of US AI investment being throttled by the Democratic blue wave following the midterms end up being a positive for China's AI ambitions? It's only a hypothesis at this point, but one worth thinking about given how much the Hang Seng Tech Index has underperformed over recent years. If investors begin to perceive that the relative advantage may swing back towards Chinese AI players, it could provide a catalyst to spark a reversal of the index's recent disappointing performance. Looking at the daily chart of our Hong Kong Tech contract, the immediate level to watch overhead is 4,059.4, where downtrend resistance intersects with former horizontal support that acted as a breakdown point earlier in October. The price tested the intersection of those levels earlier today but was rejected, although the subsequent pullback has been mild so far. If we were to see a break above 4,059.4, especially if followed by a backtest and bounce, it could provide a decent opportunity to initiate longs with a tight stop beneath the level for protection. The initial target would be the 50-day moving average, followed by 4,250, another level that has acted as both support and resistance on numerous occasions earlier this year. Above that sits the longer-term bearish trend extending from the highs set in October 2025. There's still a long way to go before that downtrend is cleared, but it's something to keep an eye on, particularly with momentum indicators showing early signs of improvement. RSI (14) has been setting higher highs and higher lows and is heading back towards the neutral 50 level, while MACD has staged a bullish crossover, although it remains in negative territory. That suggests upside momentum may be in the early stages of shifting, but until we get confirmation through a breakout above resistance, it's difficult to get too excited while the price remains beneath 4,059.4. On the downside, 3,900.4 is the first level to watch, having acted as resistance around the calendar turn last week. A break beneath that would bring 3,704.4, the swing low set in late October, back into focus should we see a deeper reversal. Good luck! DS