Hang Seng Index (HSI) - 17 Jan 2011

Based on chart reading, HSI currently is at a critical point where either a break up over 24440 will see it trying for 25000. MACD and increasing trading volume both point to positive side, while RSI and Stochastic shows abit overbought. HSI now hit the upper band of the mid trend line. A good correction will bring HSI to 23300 level.

Given the CNY is coming, I foresee some profit taking to come before CNY week, however the current rally trend should continues.

1-2 weeks target 25000. If fail to cross 24400, a pull back is likely to occur.