Resistance 9070.00/ 8950.00/ 8850.00/ 8790.00
PP 8770.00
Support 8690.00/ 8650.00 (sell break)/ 8530.00/8410.00 (Sell break)

(Dow Jones)--Investors took profit Tuesday after Hong Kong's benchmark index surged 11% over the last three sessions, but the market's losses narrowed late in the day on gains in China-related financial firms. Analysts said they expect the blue-chip index to resume its rise to test 15,800 points in the coming sessions, tracking the recent strength in Chinese stocks, which ended at a seven month-high Tuesday. The Hang Seng Index fell 69.07 points, or 0.5%, to 14,928.97, but was off a low of 14,743.71 hit in the morning session. The index has risen 3.8% from the start of this year. Turnover totaled HK$50.93 billion, down sharply from HK$62.19 billion Monday, an indication that selling pressure wasn't strong, said analysts. Louis Tse, investment strategist at Value Convergence CEF, said Tuesday's consolidation was well expected because the benchmark index appeared overbought after the recent rally. But he said the index could regain strength and reach the year-to-date high of 15,763 points by the end of May, underpinned by the recent robust performance of global equities. The Shanghai Composite Index ended up 0.8% at 2439.18, the highest level since Aug. 20. Though analysts expect further near-term gains in the Hang Seng Index, they said the sustainability of the rebound will depend on Wall Street's near-term performance amid the many uncertainties facing the U.S. economy. 'The recent rise in the U.S. equities market has been very strong. Whether the (Dow Jones Industrial Index) can rise above 8,200 points will be an important cue for the local market,' said Castor Pang, a strategist at SHK Financial. He said local stocks are expensive at current levels, and recommends that investors consider buying when the benchmark index retreats to around 13,800 points. Hold sell 14,831/14035/13,490 target 13,500 stop above 15,000.
Resistance 15413.83/15174.83/14982.00/14862.50
PP 14816.33
Support 14623.50 (Sell break)/ 14457.83/ 14218.83 (Sell break)/14099.33

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