Although the Hang Seng Index remained within its sideways range, the Lion-OCBC Securities HS Tech ETF (HSTECH) which mirrors the movement of the mainland-heavy Hang Seng Tech Index has broken out of its resistance at the 78.8 cents to 79 cents range, accompanied by a notable expansion in volume, a sign that buying demand has materialised. While the breakout indicates an upside, the immediate resistance is at the closing high of 88.7 cents on Oct 7, 2024. The intra-day high on Oct 8, 2024 was 88.9 cents.
The Hang Seng Index appears poised for a breakout. Attempts by the China Securities Regulatory Commission and the People's Bank of China to revive the Chinese market may be paying dividends. The Hang Seng Index is in the process of challenging the twice-tested resistance level of 20,400. A breakout would indicate an upside of 21,800. The Hang Seng Index ended at 20,225 on Jan 31.
