STCOKWATCH: Rebound of Hong Kong stocks to meet resistance level at 14800

Under the influence of Merrill Lynch and Morgan Stanley recommending buying on Monday, US stocks have begun to assume stability, bringing positive effects to Hong Kong stocks. There is sufficient head space for the Hong Kong market to test 14500 pts, but the fact that turnover yesterday had shrunk to 8.6 billion denotes caution. The broad market is still in need of stronger forces to break through the 10-day moving average line of 14800 pts. The charts reflect a return of the HSI to the Bolliger's band, with the 14000-level of the lower band rendering technical support in the short run.

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