09/17/2002

The Hang Seng Index dropped 69 pts to 9650 last week. The index traded in a narrow range between 9650 ¡V 9800. The recent drop has brought the index to a support level of 9600. A sustained break below the 9600 level would test the 9200 / 9400 level as the next major support area. At the moment, the Hang Seng Index chart pattern looks bearish for the short-term, and will only become positive if there is a break above the 10800 level. Support is now between 9400 and 9600 and this should stabilise the index, yet major resistance remains at 11600. Any rebound in the near future would meet resistance at 9800. Downside risk is high for the next week. Technical indicators, such as the MACD weekly, are negative, and the RSI weekly is at a bearish 35.2. A sustained break above 12000/12400 could make the chart pattern more bullish.

-Edmond Yip

Hang Seng Index

Last week close

9650.97

Last week change

-69.90

Year to Date

-1500.9

52 weeks High

12021.7

52 weeks Low

8894.36

50D Moving Average

10135

250D Moving Average

10744

14W RSI

35.2

50 day hist.volatility

21.76%

Hang Seng Red-Chip Index

Last week close

1053.2

Last week change

-15.3

Year to Date

-287.2

14W RSI

36.5

50 day hist.volatility

27.00%

Hang Seng China Enterprises Index

Last week close

1924.7

Last week change

9.2

Year to Date

167.0

14W RSI

41.9

50 day hist.volatility

25.06%