The Hang Seng Index is expected to trade at 20,800-21,200 today

Investors speculating that the progress of Greece Budget cut to accelerate, Asian stock market performed well which help HK stock market to open higher. A share market rose sharply in the afternoon which helped HK stock market to rise further. The Hang Seng Index soared 319 points to 21,018 while H share index jumped 206 points to 11,706. Market turnover rose to HK$76.1bn. NDRC adjusted refined price upward which triggered downstream plays like Sinopec(0386.HK) and PetroChina (0857.HK) to rise 1.8% and 2.2% each. On the other hand, second and third liners are very active. Of which, the sport plays performance is good with Peak(1968.HK) and Anta(2020.HK) rose 12.4% and 14.5% each.

Given the lack of U.S. economic data Wednesday, as well as investors keep a close eye on Greece debt progress, US stock market traded within narrow range on early Wednesday. Later, as there are news saying that EU will hold ministry of finance meeting on Thursday, investors speculate that Greece issue will soon be solved. The Dow and the Nasdaq added 6 points (to 12,884) and 12 points (to 2,916) respectively. The Hong Kong stock market performed well recently. But whether the HSI could overcome the resistance at 250 Day SMA, it will depend on the China CPI to be released in the morning as well as A share trend.

Technical Analysis

The Hang Seng Index closed above the 21,000 level with a white candlestick, together with increasing turnover, market momentum is increasing. However, 9 Day RSI rose to 78, which reflected market is overbought. First resistance will be seen at 250 Day SMA(21,033) while second resistance is 21,500. On the other hand, first support will be seen at 10 Day SMA(20,575) and 20,000.