Hong Kong Stock Rally May Have Gone Too Far, Indicator Shows

An electronic screen displaying the Hang Seng Index in Hong Kong.Photographer: David Paul Morris/Bloomberg
Lock
This article is for subscribers only.

The stellar rally in Hong Kong stocks may be overdone, according to one technical indicator.

The 14-day relative strength index for the Hang Seng gauge has stayed above 70 — a level which indicates the measure is in overbought territory — for most of this month. The benchmark last breached the milestone in January 2023, after which it fell 16%.