Hong Kong: HANG SENG INDEX (.HSI) China’s government bonds poised for worst week since 2014
China’s booming equity rally entered a new phase this week as economic data provided bulls with a fresh catalyst.
After signals from the Treasury market in March got the whole world panicking over global growth, equity investors were encouraged by data showing China’s factory sentiment stabilized. They took it as evidence that the economic slowdown may not be as bad as feared, which in China sent the Shanghai Composite Index to a fresh high for the year. Hong Kong stocks also got a lift, entering a bull market and matching their best streak in a year. The Hang Seng Index briefly rose above 30,000 points on Thursday.
It’s a change of focus for a market that was driven by momentum and risk appetite in the first quarter. Another leg up will be based on whether data and earnings improve. Equity markets in mainland China, Hong Kong and Taiwan are shut Friday for a holiday.
Overall, the bias in prices is: Upwards.
Note: this chart shows extraordinary price action to the upside.
The projected upper bound is: 30,710.56.
The projected lower bound is: 29,271.67.
The projected closing price is: 29,991.12.
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.
A spinning top occurred (a spinning top is a candle with a small real body). Spinning tops identify a session in which there is little price action (as defined by the difference between the open and the close). During a rally or near new highs, a spinning top can be a sign that prices are losing momentum and the bulls may be in trouble.
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 93.8732. This is an overbought reading. However, a signal is not generated until the Oscillator crosses below 80 The last signal was a buy 5 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 67.59. 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 27 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 128.This is an overbought reading. However, a signal isn’t generated until the indicator crosses below 100. The last signal was a sell 10 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 2 period(s) ago.
Rex Takasugi – TD Profile
HANG SENG INDEX closed down -50.070 at 29,936.320. Volume was 7% above average (neutral) and Bollinger Bands were 6% wider than normal.
Open High Low Close Volume___
Short Term: Overbought
Intermediate Term: Bullish
Long Term: Bullish
Moving Averages: 10-period 50-period 200-period
Close: 29,186.78 28,561.56 27,429.42
Volatility: 18 16 22
Volume: 1,979,285,120 1,911,178,624 1,858,761,088
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 9.1% above its 200-period moving average and is in an upward trend. Volatility is Our volume indicators reflect moderate flows of volume into .HSI (mildly bullish). Our trend forecasting oscillators are currently bullish on .HSI and have had this outlook for the last 2 periods.