Investment Daily

The Hang Seng Index is expected to trade at 26,500to 26,900today

    The mainland stock market rally benefitted Hang Seng Index on Wednesday. Itincreased 147points and closed at 26,672points. HSCEI closed at 10,860points,rising 105point. Turnover was $90.9billion. The technology sector remainedstrong, among which Sunny Optical(2382)further jumped 7%. In addition,several coal and cement stock prices broke 52-week high. Furthermore, amainland securities company predicted over 30% profit growth yoy in 1H2017,stimulating the peers stock price.Although IBM share price decline owing to disappointing quarter results, but mostother corporate reported better than expected quarter earnings on Wednesday, USstock market continued its recent rally. Besides, US oil inventory dropped morethan market expectation, oil price rose 1.6% to 47.1US dollar per barrel, supportthe oil stock price to rise. Major US stock index closed at record high with theDow and the Nasdaq rose 66points (to 21,641) and 41points (to 6,385)respectively.Although Hang Seng Index has already rose for 8consecutive trading days, butlocal blue chips continued to perform well in the US ADR market, we expect thatHang Seng Index will still open higher today. On the other hand, investor focuswill on ECB meeting tonight, especially chairman Draghi speech at the pressconference, to look for hints on when will start to scale down quantative easing.

    Technical Analysis

    HSI has been rising for the eighth trading day. It is located above the ceiling ofBollinger Band(26,585points), and the MACD bullish gap is expanding. Thefirst resistance is 27,000points. The next resistance is 27,300points. The firstsupport is 26,147points, and the next support is the middle line of Bollinger Band25,890points.