Hong Kong's Stock Rebound Runs Risk of Overheating: Chart

Traders work on the trading floor of the Hong Kong Stock Exchange in Hong Kong, China.

Photographer: Lam Yik Fei/Bloomberg

A 16 percent rally by Hong Kong stocks from this year’s February low may falter, technical indicators suggest. The Hang Seng Index’s 14-day relative strength index rose to the cusp of 70 on Thursday, a level that some traders consider signals declines. The city’s benchmark gauge has advanced for the past seven days, the longest winning streak in 12 months, to its highest level this year.

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