The Hang Seng Index (HSI) maintained its strength and set a new high in nearly 11 months. Technically, it broke through the first-line resistance of 22,500 and ushered in further room for further growth.
The Hang Seng Index (HSI) edged up 0.54%
U.S. economic data overnight supported risk appetite, and the U.S. stock market was significantly higher. Overnight data showed that the initial value of the annualized quarterly rate of real GDP in the fourth quarter of the United States was 2.9%, higher than the expected 2.6%, and the highest since the fourth quarter of 2021. Meanwhile, orders for durable goods surged 5.6% in December, well above expectations of a 2.5% increase and the largest increase since July 2020.
The strong economic data on Thursday night eased concerns about economic growth and further boosted the already strong risk appetite in the near future. The three major US stock indexes achieved varying degrees of gains-the S&P 500 rose 1.1%, and the Dow Jones index rose 0.61%, and the Nasdaq rose 1.76%. The panic index continued to decline that day, falling nearly 2%.
The Hang Seng Index (HSI) extended its strength on Friday, albeit with modest gains. The HSI opened up 0.21%, weakened slightly in early trading to drop 0.37%, then rebounded and rose slightly by 0.54% at the close. The Hang Seng Technology Index closed up 1.04% on Friday. On January 27, the net inflow of funds into the Hong Kong stock market through Hong Kong Stock Connect was 3.065 billion yuan, and the net purchase was 1.122 billion yuan.
On Friday, 47 stocks in the Hang Seng Index rose, 27 fell and 2 were flat. The top three constituent stocks with the best performance and their gains were: Country Garden rose 6.23%; Longfor Group rose 4.25%; Sands China Co., Ltd. rose 4.09%. The top three constituent stocks with the worst performance and their declines were: Xinyi Solar fell 2.97%; Zhongsheng Holdings fell 2.23%; Lenovo Group fell 2.02%. The main heavyweights performed as follows: Tencent Holdings rose 2.02%; Alibaba fell 0.17%; China Construction Bank rose 0.96%.
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Hang Seng Index (HSI) Trend Technical Analysis
The daily chart shows that the Hang Seng Index (HSI) has confirmed that it has broken through the key resistance at 22,500, which was at the high point of shocks in April and June last year, and the subsequent upward target may point to 23,000 and 23,500.
And if it falls back in the short term, the initial support will focus on 22500, and if it falls below, focus on the gap gap 22000-22400 area. (Follow the author on Twitter @Legen_DailyFX )
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