Hong Kong: HANG SENG INDEX (.HSI) Bounces Back
Asian stock markets bounced back Thursday, led by strong gains in Japan and Hong Kong, as the U.S. offered to renew trade talks with China.
After falling for seven of the past nine sessions, Japan’s Nikkei NIK, +0.96% was up nearly 1% as the index pushed back into positive territory for 2018. SoftBank 9984, +4.72% was up some 4.7%, and export-reliant companies such as Toyota 7203, +1.83% and Honda 7267, +1.96% were up nearly 2%.
Hong Kong stocks, down for six straight days, roared back to life, with the Hang Seng Index HSI, +2.54% up 2.5%. Mainland heavyweights including Tencent 0700, +4.99% , China Construction Bank 0939, +3.31% and Ping An 2318, +2.70% were strong while Geely 0175, +8.36% rebounded more than 8% and beaten-down Macau casinos stocks climbed. But drugmakers remained under pressure on looming price cuts, with Sino Biopharma 2922, -1.60% and CSPC 1093, -2.04% both lower.
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 28,359.57.
The projected upper bound is: 27,849.24.
The projected lower bound is: 26,133.03.
The projected closing price is: 26,991.14.
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 22 white candles and 28 black candles for a net of 6 black 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 3 rising windows in the last 50 candles–this makes the current rising window even more 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 27.1429. This is not an overbought or oversold reading. The last signal was a buy 0 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 42.40. This is not a topping or bottoming area. However, the RSI just crossed above 30 from a bottoming formation. This is a bullish sign. A buy or sell signal is generated when the RSI moves out of an overbought/oversold area. The last signal was a buy 0 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 -60. This is not a topping or bottoming area. The last signal was a buy 0 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 6 period(s) ago.
Rex Takasugi – TD Profile
HANG SENG INDEX closed up 669.451 at 27,014.490. Volume was 26% above average (neutral) and Bollinger Bands were 28% 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: 27,116.21 27,967.71 29,870.08
Volatility: 25 20 22
Volume: 2,030,402,944 1,766,193,152 2,149,202,432
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 9.6% 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 6 periods.