INVESTMENT DAILY

The Hang Seng Index is expected to trade at 25,000 to 25,300today

    Hong Kong market gained strong momentum in the afternoon. Hong Kong marketopened higher by 90 points followed previous gains of US market, it narrow tradedthen. However, HSI advanced about 200 points driven by corporates’ interim resultsrelease. HSI rallied 167 points to close at 25,123. HSCEI also gained 29 points toclose at 11,095. Market turnover posted HK$72.4bn. Revenue of China ResourcesLand (1109 HK) increased 75.5% yoy, the counter surged 7.6% to be the bestperformer of blue chips.

    Thanks to a series of positive factors including better than expected US home salesdata, latest released consumer price index data showing that inflation is still in linewith expectation, as well as buying interest on Apple with the anticipation oflaunching a new iphone, US stock market continued its recent rally. The Dow andthe Nasdaq closed 81 points (to 16,920) and 19 points (to 4,528) higher respectively.

    On the other hand, oil price continued its recent weakness which fell US$1.9 toUS$94.5 per barrel.

    Hang Seng Index rose above 25,000 level, technical trend remained firm. However,market turnover does not improve much. Besides, major corporate continued todeliver its interim result, investors will switch into those impressive earnings play.

    Technical Analysis

    Hang Seng Index closed with gyro on Tuesday, Technically, Hang Seng index brokethrough 25,000, however MACDs bullish gap expanded, showing that momentumwas stable. Hang Seng index first support would be 10DMA (24,736), while nextsupport would be 50DMA (23,823). For resistance, 25,300 become first resistance,while next resistance would be seen at 25,500.