Hong Kong: HANG SENG INDEX (.HSI) Beijing pledges a mix of tax breaks to help businesses
Hong Kong and China stocks shot up Tuesday, after the Chinese government pledged tax cuts to boost manufacturing and small enterprises amid a slowing economy and the US-China trade war.
The Hang Seng Index surged 2 per cent, or 531.96 points, to close at 26,830.29, the highest level since December 4. The Shanghai Composite Index climbed 1.4 per cent, or 34.58 points, at 2,570.34.
Traders piled into stocks — from banks and insurers to automobiles — after China’s policymakers and government bureaus declared their resolution to help the slowing economy with supportive measures in several back-to-back press conferences.
The stimulus signals followed an unexpected slump in China’s December exports and imports on Monday, which amplified concerns over China’s economy and weighed down on markets from Hong Kong to New York.
Overall, the bias in prices is: Upwards.
By the way, prices are vulnerable to a correction towards 26,419.66.
The projected upper bound is: 27,938.17.
The projected lower bound is: 25,778.98.
The projected closing price is: 26,858.57.
A white body occurred (because prices closed higher than they opened).
During the past 10 bars, there have been 5 white candles and 5 black candles. During the past 50 bars, there have been 27 white candles and 23 black candles for a net of 4 white candles.
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 83.9159. This is an overbought reading. However, a signal is not generated until the Oscillator crosses below 80 The last signal was a buy 14 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 60.60. 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 63 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 123.This is an overbought reading. However, a signal isn’t generated until the indicator crosses below 100. The last signal was a sell 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 buy 5 period(s) ago.
Rex Takasugi – TD Profile
HANG SENG INDEX closed up 531.959 at 26,830.289. Volume was 4% above average (neutral) and Bollinger Bands were 14% narrower than normal.
Open High Low Close Volume___
Short Term: Overbought
Intermediate Term: Bullish
Long Term: Bearish
Moving Averages: 10-period 50-period 200-period
Close: 26,031.15 26,082.29 28,013.24
Volatility: 29 26 24
Volume: 1,809,245,824 1,651,836,032 1,864,769,152
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 is currently 4.2% below its 200-period moving average and is in an upward trend. Volatility is relatively normal 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 bullish on .HSI and have had this outlook for the last 1 periods.