Clouds of tear gas returned to Hong Kong: HANG SENG INDEX (.HSI) over the weekend as police and protesters clashed

Clouds of tear gas returned to Hong Kong: HANG SENG INDEX (.HSI) over the weekend as police and protesters clashed

Clouds of tear gas returned to Hong Kong: HANG SENG INDEX (.HSI) over the weekend as police and protesters clashed

Clouds of tear gas returned to Hong Kong over the weekend as police and protesters clashed, signaling pro-democracy rallies are set to drag on after demonstrators got a boost from an election win and support from the U.S. Congress.

Tensions rose in the former British colony as thousands of black-clad protesters marched in the busy tourist district of Tsim Sha Tsui on Sunday afternoon. Unrest had been brewing since late Saturday, when a group blocked roads and set fire to a subway station entrance.

Hong Kong residents handed an overwhelming victory to pro-democracy candidates in a vote for local district councils on Nov. 24, a stunning repudiation of the city’s Beijing-backed government. Still, Chief Executive Carrie Lam didn’t make any new concessions to protesters after the poll, a move that could have fueled the anger seen over the weekend.

Hong Kong’s newly appointed police chief Chris Tang said an independent probe into the use of force by police would be unjust, the South China Morning Post reported Sunday, citing comments he made in a radio program.Meanwhile, China said it “strongly” opposed an opinion piece by United Nations High Commissioner for Human Rights Michelle Bachelet in the South China Morning Post on Saturday, accusing her of meddling in the country’s affairs and emboldening Hong Kong protesters to commit violence.

Bachelet urged the city’s government to conduct a “proper independent and impartial judge-led investigation” into reports of excessive use of force by police. She also called on Lam’s administration to “prioritize a long-overdue process” of meaningful and inclusive dialogue with the people of Hong Kong.

Technical Indicators

Overall, the bias in prices is: Downwards.

The projected upper bound is: 27,112.05.

The projected lower bound is: 25,564.63.

The projected closing price is: 26,338.34.

Candlesticks

A big black candle occurred. This is bearish, as prices closed significantly lower than they opened. If the candle appears when prices are “high,” it may be the first sign of a top. If it occurs when prices are confronting an overhead resistance area (e.g., a moving average, trendline, or price resistance level), the long black candle adds credibility to the resistance. Similarly, if the candle appears as prices break below a support area, the long black candle confirms the failure of the support area.
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 25 white candles and 25 black 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. There have been 5 falling windows in the last 50 candles–this makes the current falling window even more bearish.

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 42.3125. This is not an overbought or oversold reading. The last signal was a buy 8 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 42.58. 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 sell 15 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 -79. This is not a topping or bottoming area. The last signal was a buy 9 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 sell 0 period(s) ago.

Rex Takasugi – TD Profile

HANG SENG INDEX closed down -547.240 at 26,346.490. Volume was 23% above average (neutral) and Bollinger Bands were 11% narrower than normal.

Open     High      Low     Close     Volume___
26,705.38126,705.38126,308.10026,346.4902,004,856,704
Technical Outlook 
Short Term: Neutral
Intermediate Term: Bearish
Long Term: Bearish
Moving Averages: 10-period     50-period     200-period
Close: 26,782.76 26,632.46 27,694.15
Volatility: 23 18 19
Volume: 1,516,475,392 1,518,677,760 1,757,403,648

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 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.
HANG SENG INDEX is currently 4.9% below its 200-period moving average and is in an downward 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 bearish on .HSI and have had this outlook for the last 6 periods.

The following two tabs change content below.
HEFFX has become one of Asia’s leading financial services companies with interests in Publishing, Private Equity, Capital Markets, Mining, Retail, Transport and Agriculture that span every continent of the world. Our clearing partners have unprecedented experience in Equities, Options, Forex and Commodities brokering, banking, physical metals dealing, floor brokering and trading.

You must be logged in to post comments :  
CONNECT WITH