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This Hong Kong-listed index of 40 H shares, which are also included in the mainland’s composite index, has been consolidating in a neat triangle for weeks. Obviously, at some point, it will break out of this consolidation pattern, but which way? Hong Kong dollar-denominated shares are of increasing interest to investors because they provide a natural hedge against the yuan, which has been weakening against the US dollar, the focus of our previous piece. However, the technicals, though poor, have a very slight downside bias. Long-term moving averages have been negative for almost a year while the MACD has been below zero for the past month and momentum barely bullish. This would target February’s low of 7,500 points.