Hong Kong: HANG SENG INDEX (.HSI) shares end higher as China trade data lifts sentiment

Hong Kong: HANG SENG INDEX (.HSI) shares end higher as China trade data lifts sentiment

Hong Kong shares closed higher on Tuesday after China reported smaller-than-expected contractions in imports and exports in March, and as fears over the global spread of the new coronavirus eased.

The Hang Seng index ended up 135.07 points or 0.56% at 24,435.40. The Hang Seng China Enterprises index rose 0.37% to 9,847.47.

The sub-index of the Hang Seng tracking energy shares dipped 1.1%, while the IT sector rose 1.12%, the financial sector ended 0.6% higher and the property sector rose 1.05%.

China’s exports fell 6.6% in March from a year earlier, while imports shrank 0.9%, a better-than-expected outcome as factories restarted production, though the global coronavirus health crisis looks set to keep trade under pressure over coming months.

The top gainer on the Hang Seng was CK Asset Holdings Ltd , which gained 3.76%, while the biggest loser was AAC Technologies Holdings Inc, which fell 3.21%.

China’s main Shanghai Composite index closed up 1.59% at 2,827.28, while the blue-chip CSI300 index ended up 1.93%

Technical Indicators

Overall, the bias in prices is: Downwards.

The projected upper bound is: 25,947.15.

The projected lower bound is: 22,941.81.

The projected closing price is: 24,444.48.

Candlesticks

A black body occurred (because prices closed lower than they opened).
During the past 10 bars, there have been 6 white candles and 4 black candles for a net of 2 white candles. During the past 50 bars, there have been 28 white candles and 22 black candles for a net of 6 white candles.

A long upper shadow occurred. This is typically a bearish signal (particularly when it occurs near a high price level, at resistance level, or when the security is overbought).

A spinning top occurred (a spinning top is a candle with a small real body). Spinning tops identify a session in which there is little price action (as defined by the difference between the open and the close). During a rally or near new highs, a spinning top can be a sign that prices are losing momentum and the bulls may be in trouble.

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 92.8296. This is an overbought reading. However, a signal is not generated until the Oscillator crosses below 80 The last signal was a sell 10 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 53.22. This is not a topping or bottoming area. A buy or sell signal is generated when the RSI moves out of an overbought/oversold area. The last signal was a buy 14 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 134.This is an overbought reading. However, a signal isn’t generated until the indicator crosses below 100. The last signal was a buy 14 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 12 period(s) ago.

Rex Takasugi – TD Profile

HANG SENG INDEX closed up 46.580 at 24,481.980. Volume was 81% below average (consolidating) and Bollinger Bands were 3% wider than normal.

Open     High      Low     Close     Volume___
24,499.85924,603.60024,449.47124,481.980 394,270,400
Technical Outlook 
Short Term: Overbought
Intermediate Term: Bullish
Long Term: Bearish
Moving Averages: 10-period     50-period     200-period
Close: 23,839.59 25,261.71 26,661.36
Volatility: 26 40 27
Volume: 2,056,785,024 2,561,040,384 1,810,898,560

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

HANG SENG INDEX is currently 8.2% below its 200-period moving average and is in an upward trend. Volatility is high as compared to the average volatility over the last 10 periods. Our volume indicators reflect volume flowing into and out of .HSI at a relatively equal pace (neutral). Our trend forecasting oscillators are currently bullish on .HSI and have had this outlook for the last 1 periods.

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