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Sunday 22 March 2009

Hong Kong’s Hang Seng Index – holding just above 50-day SMA



We have revised HSI’s preferred wave count and now hold the view that the index completed wave v in early Mar. The rebound since then looks “impulsive”, breaking out of its resistance trend line and even closing above its 50-day SMA (13,068) yesterday. The upturn is close to its end and we should see a pullback, probably at least testing the support trend line at 12,150pts sometime next week.

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