Hong Kong: HANG SENG INDEX (.HSI) China reported stronger-than-expected investment in its slowing economy

Hong Kong: HANG SENG INDEX (.HSI) China reported stronger-than-expected investment in its slowing economy

Hong Kong: HANG SENG INDEX (.HSI) China reported stronger-than-expected investment in its slowing economy

Hong Kong stocks edged higher on Thursday after China reported stronger-than-expected investment in its slowing economy, but a weaker industrial output growth limited the gains.

The Hang Seng index ended 0.2 percent higher at 28,851.39 points. The Hang Seng China Enterprises index rose 0.4 percent.

The sub-index of the Hang Seng tracking energy shares rose 1.7 percent, while the IT sector dipped 0.8 percent, the financial sector ended 0.1 percent higher and the property sector lost 0.3 percent.’

China’s industrial output rose 5.3 percent in the first two months of the year, the National Bureau of Statistics said, less than expected and the slowest pace since early 2002. However, investment picked up speed as the government fast-tracked more road and rail projects, and more monetary policy support is expected this year.

U.S. President Donald Trump said on Wednesday he was in no rush to complete a trade pact with China, including protection for intellectual property, a major sticking point between the two sides during months of negotiations.

China’s main Shanghai Composite index closed down 1.2 percent at 2,990.69 points, while the blue-chip CSI300 index ended down 0.7 percent. 

Overall, the bias in prices is: Upwards.

Note: this chart shows extraordinary price action to the upside.

The projected upper bound is: 29,724.38.

The projected lower bound is: 28,112.28.

The projected closing price is: 28,918.33.

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 31 white candles and 19 black candles for a net of 12 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 80.0923. This is an overbought reading. However, a signal is not generated until the Oscillator crosses below 80 The last signal was a buy 2 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 58.54. 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 sell 12 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 19. This is not a topping or bottoming area. The last signal was a buy 2 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 sell 10 period(s) ago.

Rex Takasugi – TD Profile

HANG SENG INDEX closed up 43.941 at 28,851.391. Volume was 19% below average (neutral) and Bollinger Bands were 39% narrower than normal.

Open High Low Close Volume___
28,891.06128,932.47128,696.31128,851.3911,433,219,840

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

Moving Averages: 10-period 50-period 200-period
Close: 28,786.18 27,680.64 27,550.46
Volatility: 18 19 23
Volume: 1,959,428,096 1,852,292,608 1,863,009,024

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 4.7% above its 200-period moving average and is in an upward 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 bullish on .HSI and have had this outlook for the last 40 periods.

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