Hong Kong: HANG SENG INDEX (.HSI) bracing for more volatility
We are now two months away from the end of the year, and half of the major Asian stock markets are down about 10 percent or more. Some have entered bear markets and in total, more than $5 trillion in market value has been wiped out in 2018.
With about 40 trading days left, whether bulls or bears will win is anyone’s guess, but bracing for more volatility could perhaps be a smart move. The MSCI Asia Pacific Index gained for a third straight day — a streak not seen in six weeks — and for now, it looks like “shock-tober” hasn’t seeped into November.
So what should investors look out for over the next two months? The big ones would be the U.S. mid-term election results due Nov. 6 and, later this month, President Donald Trump and Chinese Premier Xi Jinping are due to hold talks on the sidelines of a Group of 20 summit in Argentina to discuss the long-lasting trade issues.
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 26,904.49.
The projected upper bound is: 26,441.17.
The projected lower bound is: 24,303.55.
The projected closing price is: 25,372.36.
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 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 4 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 51.7093. This is not an overbought or oversold reading. The last signal was a buy 1 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 44.51. 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 13 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 20. 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 buy 0 period(s) ago.
Rex Takasugi – TD Profile
HANG SENG INDEX closed up 436.311 at 25,416.000. Volume was 18% above average (neutral) and Bollinger Bands were 2% 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: 25,181.62 26,713.99 29,344.20
Volatility: 30 26 24
Volume: 2,125,238,016 1,932,612,224 2,150,146,048
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 13.4% below its 200-period moving average and is in an downward trend. Volatility is high as compared to the average volatility over the last 10 periods. 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 19 periods.
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