Salient to Investors:
Wang Zilong at Phillip Futures said the Hang Seng China Enterprises Index of mainland stocks traded in Hong Kong is set to advance to levels unseen since May because its 50-day moving average climbed above its 100-day measure on Sept. 30, forming a golden cross for the first time in a year. Wang said the golden cross is a very positive signal and said the uptrend will remain intact.
The last time a golden cross pattern occurred between the 50-day and 100-day moving averages of the Hang Seng China Enterprises Index, on Sept. 27, 2012, the gauge advanced 25 percent through Feb. 1.
Tan Chee Tat at Phillip Futures said the Hang Seng Index formed a golden cross in September and its 50-day moving average approached its 200-day moving average yesterday, a sign the index may advance to 23,500.
The Hang Seng Index formed two golden crosses in September 2012 and then rose 14 percent from the end of that month to a 21-month high on January 30.
Read the full article at http://www.bloomberg.com/news/2013-10-02/h-shares-set-to-rally-on-golden-cross-technical-analysis.html
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