The Hang Seng Index is poised to move quickly towards its record high, a technical analyst says.
John Schofield, regional research analyst at Nava SC Securities, said the strength in the index was demonstrated by a number of key stocks breaking through long-term resistance barriers.
The 123-point surge in the Hang Seng Index yesterday saw it kick free of final resistance from February's 11,600 high.
Mr Schofield said one way to gauge where the index would head to next was to examine the technical charts of the leading index constituents.
HSBC, the biggest stock by market capitalisation, has been setting a string of new highs as it has led the recent rally, and now might mark time.
The other members of the top five blue chips seemed more promising.
Sun Hung Kai Properties this week broke out of a long-term resistance level at $79.25 and is set to head higher.
