As of the close on June 2, the Hang Seng Index settled at 26,038 points, recording a single-day gain of 640 points and a trading turnover of 373.7 billion HKD. Following volatility earlier in the month, the broader market extended its upward momentum yesterday, displaying a low-open, high-close intraday pattern. Despite opening slightly lower in the early session, the index gradually rose under the influence of stabilization funds, eventually breaking through multiple resistance levels including the 10-, 20-, 50-, and 250-day moving averages, which preliminarily repaired market sentiment.
From a monthly technical perspective, the Hang Seng Index currently trades within a range extending from 25,174 to 26,045 points, with a cumulative volatility of approximately 871 points. Analysts suggest this range remains relatively narrow considering the demands of the full month's market activity. Given that highs and lows typically do not concentrate within the same trading week, the index retains the momentum to expand upward and challenge a monthly high as long as the current recovery trend persists.
However, it is noteworthy that despite the improvement in short-term indicators, the moving average system remains in an inverted arrangement, with the 100-day MA positioned at the top, followed sequentially by the 20-, 50-, 250-, and 10-day moving averages below. This structure indicates that the overall market remains in a phase characterized by unclear direction and soft fundamentals. Should the Hang Seng Index continue to oscillate near the 10-day MA, the technical landscape would still reflect a weak pattern testing the bottom, with support levels to watch located in the lows formed in late May and late March.
Looking ahead, the critical factor is whether the Hang Seng Index can effectively establish stability above the 10-day and 250-day moving averages. Only if buying power continues to align and the index successfully consolidates at these key levels can market stabilization be preliminarily confirmed, warranting cautious optimism for the medium-term trend. Conversely, failure to hold these defense lines may make it difficult to reverse the medium-to-long-term adjustment trend.
