Hong Kong: HANG SENG INDEX (.HSI) banks and property stocks are among the bright spots

Hong Kong: HANG SENG INDEX (.HSI) banks and property stocks are among the bright spots

Hong Kong: HANG SENG INDEX (.HSI) banks and property stocks are among the bright spots

Hong Kong stocks ended little changed on Friday and mainland Chinese shares fell, amid continuing concern over trade tensions between the US and China, although measures announced this week by Beijing to stimulate the economy offered support.

The Hang Seng index rose 0.1 percent to 28,804.28, while the China Enterprises Index gained 0.2 percent to 11,047.42 points.

China plans to put more money into infrastructure projects and ease borrowing curbs on local governments to help soften the blow to the economy from the US-China trade war, policy sources told Reuters.

Profit growth for China’s industrial firms last month eased from the previous month, as factory production slowed.

The sub-index of the Hang Seng tracking energy shares rose 1 percent while the IT sector rose 0.15 percent, the financial sector was 0.05 percent higher and property sector rose 0.45 percent.

Overall, the bias in prices is: Downwards.

The projected upper bound is: 29,641.29.

The projected lower bound is: 27,873.35.

The projected closing price is: 28,757.32.

Candlesticks

A white body occurred (because prices closed higher than they opened).
During the past 10 bars, there have been 4 white candles and 6 black candles for a net of 2 black candles. During the past 50 bars, there have been 26 white candles and 24 black candles for a net of 2 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 82.3810. This is an overbought reading. However, a signal is not generated until the Oscillator crosses below 80 The last signal was a buy 5 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 49.48. 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 19 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 76. This is not a topping or bottoming area. The last signal was a sell 0 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 13 period(s) ago.

Rex Takasugi – TD Profile

HANG SENG INDEX closed up 23.139 at 28,804.279. Volume was 38% below average (neutral) and Bollinger Bands were 47% narrower than normal.

Open High Low Close Volume___
28,734.73028,816.68928,572.78928,804.2791,243,340,032

Technical Outlook
Short Term: Overbought
Intermediate Term: Bearish
Long Term: Bearish

Moving Averages: 10-period 50-period 200-period
Close: 28,449.91 29,600.60 30,029.01
Volatility: 14 19 21
Volume: 1,747,334,528 2,047,890,560 2,170,351,360

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 4.1% below its 200-period moving average and is in an downward trend. Volatility is low 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 27 periods.

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