Bank of China (HKG:3988) Prices are Vulnerable to a Correction Towards 3.42

Bank of China (HKG:3988) Prices are Vulnerable to a Correction Towards 3.42

Bank of China (HKG:3988) Prices are Vulnerable to a Correction Towards 3.42

Overall, the bias in prices is: Upwards.

Short term: Prices are moving.

Intermediate term: Prices are trending.

Note: this chart shows extraordinary price action to the upside.

By the way, prices are vulnerable to a correction towards 3.42.

The projected upper bound is: 3.70.

The projected lower bound is: 3.44.

The projected closing price is: 3.57.

Bank of China

Candlesticks

A black body occurred (because prices closed lower than they opened).
During the past 10 bars, there have been 9 white candles and 1 black candles for a net of 8 white candles. During the past 50 bars, there have been 24 white candles and 22 black candles for a net of 2 white candles.

A falling window occurred (where the bottom of the previous shadow is above the top of the current shadow). This usually implies a continuation of a bearish trend.

Momentum Indicators

Momentum is a general term used to describe the speed at which prices move over a given time period. Generally, changes in momentum tend to lead to changes in prices. This expert shows the current values of four popular momentum indicators.

Stochastic Oscillator

One method of interpreting the Stochastic Oscillator is looking for overbought areas (above 80) and oversold areas (below 20). The Stochastic Oscillator is 53.3333. This is not an overbought or oversold reading. The last signal was a sell 0 period(s) ago.

Relative Strength Index (RSI)

The RSI shows overbought (above 70) and oversold (below 30) areas. The current value of the RSI is 57.16. This is not a topping or bottoming area. However, the RSI just crossed below 70 from a topping formation. This is a bearish sign. A buy or sell signal is generated when the RSI moves out of an overbought/oversold area. The last signal was a sell 0 period(s) ago.

Commodity Channel Index (CCI)

The CCI shows overbought (above 100) and oversold (below -100) areas. The current value of the CCI is 24. This is not a topping or bottoming area. The last signal was a sell 0 period(s) ago.

MACD

The Moving Average Convergence/Divergence indicator (MACD) gives signals when it crosses its 9 period signal line. The last signal was a buy 6 period(s) ago.

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Rex Takasugi – TD Profile

BANK OF CHINA closed down -0.160 at 3.560. Volume was 47% above average (neutral) and Bollinger Bands were 28% wider than normal.

Open High Low Close Volume___
3.630 3.640 3.560 3.560 433,813,440

Technical Outlook
Short Term: Neutral
Intermediate Term: Bullish
Long Term: Bullish

Moving Averages: 10-period 50-period 200-period
Close: 3.61 3.33 3.20
Volatility: 34 24 29
Volume: 382,265,984 291,902,400 293,738,624

Short-term traders should pay closer attention to buy/sell arrows while intermediate/long-term traders should place greater emphasis on the Bullish or Bearish trend reflected in the lower ribbon.

Summary

BANK OF CHINA gapped down today (bearish) on normal volume. Possibility of a Runaway Gap which usually signifies a continuation of the trend. Four types of price gaps exist – Common, Breakaway, Runaway, and Exhaustion. Gaps acts as support/resistance.
BANK OF CHINA is currently 11.1% above its 200-period moving average and is in an upward trend. Volatility is extremely high when compared to the average volatility over the last 10 periods. There is a good possibility that volatility will decrease and prices will stabilize in the near term. Our volume indicators reflect moderate flows of volume into 3988.HK (mildly bullish). Our trend forecasting oscillators are currently bullish on 3988.HK and have had this outlook for the last 37 periods. our momentum oscillator has set a new 14-period low while the security price has not. This is a bearish divergence.

 

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