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H-Shares Set to Rally on Golden Cross: Technical Analysis

The Hang Seng China Enterprises Index of mainland stocks traded in Hong Kong is set to advance to levels unseen since May, according to Phillip Futures Pte.

The gauge’s 50-day moving average climbed above its 100-day measure on Sept. 30, forming a so-called golden cross for the first time in a year, according to data compiled by Bloomberg. The gauge advanced about 21 percent from this year’s low on June 25 through Sept. 19, a rally that some traders consider entering a bull market, amid signs China’s economy is improving. Since then the index has fallen 4.1 percent and is 9.1 percent below a high reached in May.