Hangseng Index Eased After Touching 26,000 Level

Shanghai A-share Index posted hefty 5.0% gain on upbeat earnings of key red chips but more importantly the index successfully took-out important 'key' 3,650 resistance; moreover, it established clear support at 3,460 level.







The market now has to reckon with its' 50days MA resistance or 3,840 resistance, these levels are not decisive resistance and it shouldn't be a problem for the index; however, it is better for the index to consolidate above 3,650 resistance line now turned support before it attempts to test another strong resistance (next to 3,650) at 4,200 levels.


Meanwhile, Hangseng Index retreated after momentarily touching 26,000 level and closed -0.60% lower at 25,755.30 on turn-over value of HKD 82.6B; property sectors were weak and mainland banks paused from its' sharp rise for the past weeks, however, power companies were quite bullish today.





Technically, 26,000 level is not supposed to be a resistance for Hangseng Index but 27,000 should be more valid and strong resistance for the index; subsequently, we should see the index test 27,000 level early next week.