Hong Kong: HANG SENG INDEX (.HSI) Buy on Dips

Hong Kong: HANG SENG INDEX (.HSI) Buy on Dips

Hong Kong: HANG SENG INDEX (.HSI) Buy on Dips

The Hong Kong stock market moved back to the upside again on Wednesday, one session after it had snapped the three-day winning streak in which it had gathered more than 715 points or 2.7 percent. The Hang Seng Index now rests just above the 25,970-point plateau and it’s tipped to add to its winnings on Thursday.

The global forecast for the Asian markets is generally positive on earnings news, bargain hunting and bump in crude oil prices. The European and U.S. markets were up and the Asian markets are tipped to follow suit.

The Hang Seng finished modestly higher on Wednesday as gains from the financial shares and casinos were tempered by weakness from the oil companies.

For the day, the index advanced 131.13 points or 0.51 percent to finish at 25,971.47 after trading between 25,494.51 and 25,998.28.

Overall, the bias in prices is: Downwards.

The projected upper bound is: 27,167.85.

The projected lower bound is: 24,847.21.

The projected closing price is: 26,007.53.

Candlesticks

A black body occurred (because prices closed lower 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 23 white candles and 27 black candles for a net of 4 black 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 49.8413. This is not an overbought or oversold reading. The last signal was a sell 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 51.05. 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 28 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 27. This is not a topping or bottoming area. The last signal was a sell 10 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 15 period(s) ago.

Rex Takasugi – TD Profile

HANG SENG INDEX closed up 47.939 at 26,019.410. Volume was 43% below average (neutral) and Bollinger Bands were 5% wider than normal.

Open High Low Close Volume___
26,139.39126,139.39125,873.38126,019.4101,042,251,136

Technical Outlook
Short Term: Neutral
Intermediate Term: Bullish
Long Term: Bearish

Moving Averages: 10-period 50-period 200-period
Close: 25,917.25 26,201.27 28,880.27
Volatility: 23 28 24
Volume: 1,436,223,616 1,885,810,304 2,026,648,064

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 9.9% below its 200-period moving average and is in an upward trend. Volatility is high 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 5 periods.

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