Hong Kong: HANG SENG INDEX (.HSI) – Asia markets bounced back

Hong Kong: HANG SENG INDEX (.HSI) – Asia markets bounced back

Hong Kong: HANG SENG INDEX (.HSI) – Asia markets bounced back

Asia markets mostly recovered on Wednesday after tumbling a day before, with investors closely monitoring China’s progress in returning to work as the country deals with the coronavirus outbreak. Oil prices also bounced back.

Hong Kong’s Hang Seng index rose 0.47% in the afternoon. The city reported its second coronavirus death, marking the sixth fatality outside mainland China.

Mainland Chinese stocks erased earlier gains to decline by the close. The Shanghai composite lost 0.32% to 2,975.40, and the Shenzhen component declined 0.63% to 11,235.60. The Shenzhen composite slid 0.55% to close at 1,846.40.

China’s return to work after its extended shutdown will be closely tracked. State media reported on Tuesday that more than 80% of its central state-owned enterprises’ roughly 20,000 manufacturing subsidiaries have resumed work.

But Rodrigo Catril, senior foreign exchange strategist at the National Australia Bank, cast doubt on the actual progress, in a note on Wednesday. “This news should have been embraced warmly by the market, however high frequency data such as pollution levels and traffic congestion gauges in Beijing do not at this stage corroborate the upbeat official message, keeping investors wary,” he said.

Technical Indicators

Overall, the bias in prices is: Sideways.

The projected upper bound is: 28,627.46.

The projected lower bound is: 26,747.89.

The projected closing price is: 27,687.68.

Candlesticks

A white body occurred (because prices closed higher than they opened).
During the past 10 bars, there have been 8 white candles and 2 black candles for a net of 6 white candles. During the past 50 bars, there have been 28 white candles and 22 black candles for a net of 6 white candles.

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 42.7906. This is not an overbought or oversold reading. The last signal was a sell 1 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 50.47. 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 31 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 45. This is not a topping or bottoming area. The last signal was a sell 1 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.

Rex Takasugi – TD Profile

HANG SENG INDEX closed up 125.611 at 27,655.811. Volume was 7% below average (neutral) and Bollinger Bands were 14% wider than normal.

Open     High      Low     Close     Volume___
27,486.46127,697.46127,448.60027,655.8111,471,538,176
Technical Outlook 
Short Term: Overbought
Intermediate Term: Bearish
Long Term: Bullish
Moving Averages: 10-period     50-period     200-period
Close: 27,623.81 27,734.64 27,295.72
Volatility: 21 22 20
Volume: 1,653,035,776 1,607,873,536 1,665,059,456

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 1.3% above 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 15 periods.

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