This Rare Bullish Signal Bodes Well for Hong Kong Stock Rally

Hong Kong’s benchmark stock index has formed a so-called “golden cross”, a technical pattern seen as a bullish signal to some investors. The Hang Seng Index’s 50-day moving average has crossed above the gauge’s 200-day moving average, following the benchmark’s 54% rally since an October trough.

(Bloomberg) — Hong Kong’s benchmark stock index has formed a so-called “golden cross”, a technical pattern seen as a bullish signal to some investors. The Hang Seng Index’s 50-day moving average has crossed above the gauge’s 200-day moving average, following the benchmark’s 54% rally since an October trough.

When the pattern last emerged in November 2020, the benchmark advanced 11% in the following three months. The Hang Seng gauge is set to extend its winning streak to six weeks, its longest run in three years, driven by China’s reopening and Beijing’s pivot to growth support.   

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