Investment Daily
The Hang Seng Index is expected to trade at 20,200 to 20,500today
Benefitted from a V-shape rebound in Shanghai stock market, Hang Seng Indexreversed the downtrend as well. The index closed at 20,397 points on Thursday,increasing 29 points. HSCEI closed at 8,526 points, declining 10 points. Turnoveronce again shrank to $46.4 billion. The London Brent oil futures stayed aboveUS$50 per barrel during Asia trading session, stimulating the oil stocks to climb.
The highway investment in Mainland was RMB$347.2 billion for the first fourmonths this year, growing 8% yoy. The industry stocks performed differently.
Latest US economic data released on Thursday, overall beat expectation, but itfailed to provide much impact on US stock market. Investors preferred to staysideline after a two day strong rebound. Besides, oil price cannot close above 50US dollar per barrel, also trigger selling pressure on energy and material stock.
US stock market closed mixed after narrow range trading for the whole day. TheDow dropped 23 points (to 17,828) while the Nasdaq rose 7 points (to 4,902).
HK stock market turnover remained weak, reflect investors prefer to stay sideline.
We expect local market to continue range trading today. Investor will also eye ontonight Yellen speech to judge the US interest rate hike pace. HSI resistance is at50 Day SMA.
Technical Analysis
Hang Seng Index became less fluctuated again on Thursday, and the turnover wasnot large. We’re observing if the index can stand firm above the middle ofBollinger Band 20,204 points. The first resistance primarily moves upward to 50DMA 20,556 points, and the next resistance is 21,000 points. In addition, the firstsupport falls on the short term double trough 19,700 points, and the next support isthe bottom of Bollinger Band 19,327 points.