Xiaomi (1810.HK) Rallied After Entering the Hang Seng Index and Hang Seng China Enterprises Index

Chart showing uptrend
Xiaomi (1810.HK), a mobile phone manufacturer, would join the Hang Seng Index with the weight at 2.59%. In addition, the company would also enter the Hang Seng China Enterprises Index. All changes will take effect on September 7. Today, the stock price opened higher at 5%.

CICC estimated that Xiaomi would have HK$3.959 billion and HK$1.95 billion passive inflow for entering the Hang Seng Index and Hang Seng China Enterprises Index.

From a technical point of view, the stock gapped up and broke above the declining trend line, suggesting that the correction from July's high at HK$17.5 has possibly completed. In addition, the stock is also supported by a rising trend line drawn from June.

Bullish readers could set the nearest support level at HK$14.50 (the previous low), while the resistance levels would be located at HK$17.50 and HK$19.76 (127.2% expansion).

Source: GAIN Capital, TradingView
Related tags: Equities Stocks Tech Stocks

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