After three consecutive days of decline, the market rebounded slightly yesterday (13th) according to Guo Sizhi, Vice Chairman of the Hong Kong Stock Analysts Association. The Hang Seng Index opened high by 167 points to 18,104 points in the morning yesterday, and then rose slightly to 18,173 points but gradually became restricted due to the reluctance of buyers. As scattered selling pressure emerged, the market gradually fluctuated. The Hang Seng Index also fell back to 17,971 points at one point, but the pressure to buy back was not significant, so the market's decline was able to breathe and recover slightly. However, due to the lack of momentum, the Hang Seng Index could only slightly rebound to about 18,100 points and was gradually restricted. The market closed at 18,112 points, up 174 points from the previous day. The total daily turnover was 107.3 billion yuan.
The performance of the moving average has also weakened slightly. After a sharp drop in the past week, the Hang Seng Index has now fallen below the 20-day moving average (around 18,662 points) and the 10-day moving average (around 18,265 points). It even briefly fell below the 50-day moving average (around 17,902 points) on the 12th. However, with the support of buyers stabilizing the market, the 50-day moving average was not lost in the end, which means that although the market is still fluctuating slightly, its performance is not too bad. From a technical point of view, as long as the Hang Seng Index can recover slightly and exceed the 10-day moving average, the market's decline should be able to show signs of stabilizing. If trading remains strong and the momentum continues to support, the market may further test the 20-day moving average. Therefore, at present, in addition to paying attention to whether the Hang Seng Index can recover above the 10-day moving average, it is also necessary to focus on whether trading in the market can remain robust.
June is the mid-year mark, traditionally a time for funds to be deployed, so if the market sees a low before mid-month, it is possible to develop into a high later, as seen from the performance of major Hang Seng Index constituents. Performance is still better for stocks like China Mobile (00941.HK), HSBC (00005.HK), and CNOOC (00883.HK). In addition, stimulated by Apple (AAPL.US) launching a new AI smartphone, many smartphone concept stocks have begun to be sought after, of which AAC Technologies (02018.HK) is the most notable.
(The writer is a licensed person of the SFC)~