Hong Kong: HANG SENG INDEX (.HSI) advances for third straight week
Hong Kong stocks inched up Friday, with gains in selective local property stocks helping keep the index afloat. China benchmarks ended lower, as investors stayed on the sidelines amid uncertainties on China’s economic outlook.
The Hang Seng ended the week up less than 0.3 per cent at 27,811.35. Turnover of the main board was thin.
The CSI 300 of large cap stocks traded in Shanghai and Shenzhen slipped 0.2 per cent lower to close at 4,017.25, while the Shanghai Composite Index lost 0.4 per cent to 3,004.94.
Link Reit, Asia’s largest real estate investment trust, saw its shares climb 2.8 per cent to HK$81.10, after Daiwa Securities raised its rating to “buy” from “outperform”, with price target set at HK$97.6, implying a 20 per cent upside from Friday close.
The upgrade followed Asia’s biggest real estate investment trust saying Thursday that it had entered an agreement to buy a 10-storey grade A office building in Sydney for A$683 million (US$469.5 million) from US private equity firm Blackstone.
Other property stocks also gained, with Wharf REIC rising 2.8 per cent to HK$45.95, while China Overseas Land & Investment climbing 2.1 per cent to HK$29.6 and Hang Lung Properties advancing 1.9 per cent to HK$16.9.
Trading is likely to be sluggish this week due to the Christmas-related holidays in Hong Kong, said Alvin Cheung, an associate director at Prudential Brokerage. The Hong Kong market will close after the morning session on Tuesday and reopen on Friday.
Overall, the bias in prices is: Upwards.
Note: this chart shows extraordinary price action to the upside.
By the way, prices are vulnerable to a correction towards 27,013.77.
The projected upper bound is: 28,699.81.
The projected lower bound is: 27,105.41.
The projected closing price is: 27,902.61.
A white body occurred (because prices closed higher 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 27 white candles and 23 black candles for a net of 4 white candles.
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.
One method of interpreting the Stochastic Oscillator is looking for overbought areas (above 80) and oversold areas (below 20). The Stochastic Oscillator is 83.7765. This is an overbought reading. However, a signal is not generated until the Oscillator crosses below 80 The last signal was a buy 11 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 64.98. 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 30 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 90. This is not a topping or bottoming area. The last signal was a sell 0 period(s) ago.
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.
Rex Takasugi – TD Profile
HANG SENG INDEX closed up 70.859 at 27,871.350. Volume was 5% above average (neutral) and Bollinger Bands were 21% wider than normal.
Open High Low Close Volume___
Short Term: Overbought
Intermediate Term: Bullish
Long Term: Bullish
Moving Averages: 10-period 50-period 200-period
Close: 27,316.65 26,907.90 27,575.90
Volatility: 17 19 19
Volume: 1,549,831,936 1,523,348,736 1,714,538,624
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.
HANG SENG INDEX is currently 1.1% above its 200-period moving average and is in an upward trend. Volatility is relatively normal 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 4 periods.
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