The Hang Seng index rally continued as global stocks bounced back. Most constituent companies were in the green as investors bought last week’s dip. The HSI index is trading at H$21,492, which was higher than last week’s low of H$20,680. This price is about 17.70% above the lowest level in April this year.
Hong Kong and other global stocks bounced back as investors bought the dip. The rally happened after China Evergrande delivered a timetable for restructuring and stock trading resumption. In a statement, the company said that it will publish key documents by September 20th next year. These documents include its outstanding financial results and an investigation into its property services unit.
It will also publish its debt restructuring plan in the coming month. Therefore, the update provides important guidance to the market. The Hang Seng index also rose as part of the global stock market rally. Futures tied to the Dow Jones, S&P 500, and DAX index also pushed higher.
The best performers in the Hang Seng index were firms like Alibaba Health Information, Country Garden Services, HSBC, Galaxy Entertainment, and Ping An Insurance. Others that did well were firms like Wharf Real Estate, Citic Pacific, and Tencent. On the other hand, firms like CLP Holdings, Geely Automobile, and JD slipped.
The two-hour chart shows that the Hang Seng index has done relatively well in the past few days. It has moved from last week’s low of H$20,680 to the current level of H$21,455. The index has crossed the important resistance level at H$21,298 and the 25-period and 50-period moving averages while the MACD has moved above the neutral point.
Therefore, there is a likelihood that the index will keep rising as bulls target the next key resistance level at H$22,000. This is in line with my previous HSI forecast. A drop below the support at H$21,298 will invalidate the bullish view.
This post was last modified on %s = human-readable time difference 06:09