After a flat and volatile week, Wall Street in particular ended flat but with 90 point gains on Friday. In contrast the Hang Seng Index ended the week weaker losing 110 points. Most European index managed to gain a few points.
This coming week starting Monday 25 of March 2013, there will be a good amount of Chinese company releasing their earnings. There is a good mix of companies from services, resources and manufacturing. This could help the market find some direction.
The Hang Seng is at a turning point. Some good news coming from these companies could improve the uncertain mood in the markets, especially in the Euro-Zone.
The Hang Seng chart price is in a support area. It has had a negative couple of weeks. But technically it was expected to go lower to current levels. The Hang Seng chart price has completed forming a double bottom pattern.
What is needed now is that the Hang Seng find some positive momentum and push higher and beyond the top of the formation. If the index manages to break beyond the 24000 resistance level, then we could look to a higher future and also toward a trend channel up to the 28000 mark. But that could be months ahead.
For this Monday watch out for company earnings releases.
Monday 25 of March/ China Companies Earning Realease
China Airlines Ltd
China Asean Resources Ltd
China Construction Bank Corp
China Digital Licensing (Group) Ltd
China Fortune Investments (Holding) Ltd
China Gold International Resources Corp Ltd
China Motor Corp
China National Materials Co Ltd
China Pacific Insurance (Group) Co Ltd
China Petrochemical Development Corp
China Petroleum & Chemical Corp
China Rongsheng Heavy Industries Group Holdings Ltd
China State Construction International Holdings Ltd
China XD Plastics Company Ltd