Report Date: 18 October 2024
Broker: UOB Kay Hian Private Limited
Recent Performance
In early October, the Hang Seng Index (HSI) reached a yearly peak of around 23,200 points, representing a notable cumulative increase of 9.3% within the month. However, the index experienced a pullback from this peak last week, finding support at the psychological level of 20,000 points.
Technical Indicators
The weekly Relative Strength Index (RSI) has retreated from the overbought zone but remains above the mid-line of 50, indicating that momentum is stabilizing. The overall outlook for the HSI suggests continued volatility with a sideways movement pattern, maintaining a neutral outlook.
Key Support and Resistance Levels
- Support Level: 19,900 points
- Resistance Levels: 22,700 points and 23,200 points
A significant support level has been identified near the gap-up opening at around 19,900 points, suggesting that the HSI is likely to fluctuate within a range of 19,900 to 23,200 points.
Market Strategy
Investors are advised to maintain their current holdings and consider adding trending stocks to their portfolios for momentum trading. The report suggests a cautious approach, focusing on stocks that are showing upward trends while being prepared for potential market fluctuations.
Analyst Contact
This summary is based solely on information provided in the UOB Kay Hian report dated 18 October 2024.
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