Hong Kong: HANG SENG INDEX (.HSI) – Asian Stocks Set for Mixed Start
Asian stocks were poised for a mixed start, following the first back-to-back gains for global equities since mid-February, as negotiations in Congress continued toward a vote on the U.S. stimulus bill later this week.
S&P 500 futures fluctuated in Asia after the benchmark’s rally of more than 5% fizzled amid a dispute in the Senate. Contracts in Japan slipped, while those in Hong Kong and Australia gained. Australian shares opened higher. Republican senators raised objections to the unemployment benefits section of the stimulus bill, and Vermont Senator Bernie Sanders threatened to hold up the legislation unless those objections were dropped. The dollar stabilized after declining for a second day against its major peers, and the yen gained. The Australian and New Zealand dollars declined as much as 1%. Treasuries edged lower Wednesday.
The Senate was heading to a vote Wednesday on the more than $2 trillion aid package of spending and tax breaks. The latest draft will include about $500 billion in loans and assistance for larger companies, as well as states and cities. Equities also gained in Europe, where leaders are inching toward a fiscal package of their own.
The first consecutive daily gains for global equities since Feb. 12 come as cities from Milan to Seattle reel from the deepening pandemic. With the world’s cases now topping 451,000 and more than 20,000 deaths, traders are well aware that the threat to the global economy remains high.
Elsewhere, oil slipped after three days of gains. Gold retreated.
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 25,495.04.
The projected upper bound is: 24,943.18.
The projected lower bound is: 21,894.09.
The projected closing price is: 23,418.63.
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.
A rising window occurred (where the top of the previous shadow is below the bottom of the current shadow). This usually implies a continuation of a bullish trend. There have been 4 rising windows in the last 50 candles–this makes the current rising window even more bullish.
Three white candles occurred in the last three days. Although these candles were not big enough to create three white soldiers, the steady upward pattern is bullish.
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 63.8275. This is not an overbought or oversold reading. The last signal was a buy 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 42.51. 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 1 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 -14. This is not a topping or bottoming area. The last signal was a buy 1 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 sell 22 period(s) ago.
Rex Takasugi – TD Profile
HANG SENG INDEX closed up 863.699 at 23,527.189. Volume was 79% above average (neutral) and Bollinger Bands were 157% wider than normal.
Open High Low Close Volume___
Short Term: Neutral
Intermediate Term: Bearish
Long Term: Bearish
Moving Averages: 10-period 50-period 200-period
Close: 22,936.21 26,350.73 26,929.14
Volatility: 70 40 26
Volume: 4,202,125,056 2,451,258,112 1,793,188,736
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 gapped up today (bullish) 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 12.6% 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 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 40 periods. Our momentum oscillator has set a new 14-period high while the security price has not. This is a bullish divergence.
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