Hong Kong: HANG SENG INDEX (.HSI) – Asian stocks jump after Wall Street’s massive gains

Hong Kong: HANG SENG INDEX (.HSI) – Asian stocks jump after Wall Street’s massive gains

Hong Kong: HANG SENG INDEX (.HSI) – Asian stocks jump after Wall Street’s massive gains

Asian markets jumped Wednesday, following Wall Street’s major surge overnight as US lawmakers inched closer to approving a stimulus bill to respond to the coronavirus crisis.

Japan’s Nikkei 225 surged 6%. Australia’s S&P/ASX 200 rose 2.5%. South Korea’s Kospi gained more than 5%.

Hong Kong’s Hang Seng Index increased more than 2%, while China’s Shanghai Composite was up nearly 2%.

The Dow recorded its biggest point gain on record and its biggest percentage gain since 1933. The index closed up 11.4%, or 2,113 points.

The S&P 500 closed up 9.4%, its best day since 2008. The Nasdaq Composite finished 8.1% higher.

Investors are awaiting the massive $2 trillion stimulus package in the United States that could give a boost to companies and workers grappling with coronavirus-related shut downs, loss of business and other disruptions.

US lawmakers have been scrambling to pass the package as quickly as possible, but negotiations have stalled in recent days over the details of the bill. Senior Democratic and GOP aides said it’s likely the House and Senate votes will slip into Wednesday

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 25,478.86.

The projected upper bound is: 24,766.39.

The projected lower bound is: 21,716.98.

The projected closing price is: 23,241.68.

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 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 84.1428. This is an overbought reading. However, a signal is not generated until the Oscillator crosses below 80 The last signal was a buy 4 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 41.55. 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 2 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 -4. This is not a topping or bottoming area. The last signal was a buy 2 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 0 period(s) ago.

Rex Takasugi – TD Profile

HANG SENG INDEX closed down -174.850 at 23,352.340. Volume was 24% above average (neutral) and Bollinger Bands were 142% wider than normal.

Open     High      Low     Close     Volume___
23,604.83023,604.83023,163.67023,352.3402,519,508,224
Technical Outlook 
Short Term: Neutral
Intermediate Term: Bearish
Long Term: Bearish
Moving Averages: 10-period     50-period     200-period
Close: 22,840.54 26,240.07 26,908.01
Volatility: 68 40 26
Volume: 4,079,182,848 2,468,778,240 1,794,073,216

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 extremely high when compared to the average volatility over the last 10 periods. There is a good possibility that volatility will decrease and prices will stabilize in the near term. 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 41 periods.

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