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Hong Kong: HANG SENG INDEX (.HSI) – Asian stocks fall on lagging worries about virus, recession

Hong Kong: HANG SENG INDEX (.HSI) – Asian stocks fall on lagging worries about virus, recession

Asian shares were mixed on Wednesday, on continuing worries about the economic fallout from the pandemic as reports of coronavirus cases keep surging in various regions.

Japan’s benchmark Nikkei 225 dropped 1.7% in morning trading to 18,588.90.

Adding to the damage was the Bank of Japan’s quarterly survey of business sentiment called “tankan,” which highlighted the gloom over a likely recession. The world’s third largest economy had already been lagging for months when the outbreak began taking its toll earlier this year.

Sentiment among Japan’s large manufacturers fell in the January-March period, marking the fifth straight quarter of decline, according to the central bank. The tankan measures corporate sentiment by subtracting the number of companies saying business conditions are negative from those responding they are positive.

The key index, which measures sentiment among large manufacturers, fell to minus 8 from zero in October-December, the worst result in seven years. Sentiment among non-manufacturers was also dismal as the service sector, tourism and other businesses have also been hit hard by the outbreak.

Australia’s S&P/ASX 200 added 3% to 5,229.40, while South Korea’s Kospi slipped 0.5% to 1,745.17. Hong Kong’s Hang Seng lost 0.9% to 23,384.93, while the Shanghai Composite inched up 0.1% to 2,753.18.

Technical Indicators

Overall, the bias in prices is: Downwards.

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

By the way, prices are vulnerable to a correction towards 25,371.78.

The projected upper bound is: 24,710.21.

The projected lower bound is: 21,661.70.

The projected closing price is: 23,185.96.

Candlesticks

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 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 47.9225. This is not an overbought or oversold reading. The last signal was a sell 3 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 42.80. 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 7 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 26. This is not a topping or bottoming area. The last signal was a buy 7 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 5 period(s) ago.

Rex Takasugi – TD Profile

HANG SENG INDEX closed up 194.271 at 23,280.061. Volume was 22% above average (neutral) and Bollinger Bands were 58% wider than normal.

Open     High      Low     Close     Volume___
22,838.67023,280.06122,756.13123,280.0612,560,937,472
Technical Outlook 
Short Term: Neutral
Intermediate Term: Bearish
Long Term: Bearish
Moving Averages: 10-period     50-period     200-period
Close: 23,067.29 25,702.76 26,807.46
Volatility: 57 40 26
Volume: 3,081,647,104 2,564,664,576 1,812,743,296

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 13.2% 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 moderate flows of volume out of .HSI (mildly bearish). Our trend forecasting oscillators are currently bearish on .HSI and have had this outlook for the last 46 periods.

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