Hong Kong: HANG SENG INDEX (.HSI) concerns about the global economic outlook

Hong Kong: HANG SENG INDEX (.HSI) concerns about the global economic outlook

Hong Kong: HANG SENG INDEX (.HSI) concerns about the global economic outlook

Stocks in Asia declined on Tuesday as investor sentiment dipped on concerns about the global outlook, after the International Monetary Fund (IMF)slashed its world economic growth forecast on Monday.

In the Greater China region, the Shanghai composite declined about 1.18 percent to close at around 2,579.70 and the Shenzhen component fell 1.435 percent to finish its trading day at approximately 7,516.79. The Shenzhen composite also shed 1.171 percent to close at about 1,314.58.

Hong Kong’s Hang Seng index slipped almost 1 percent, as of its final hour of trading.

Beijing announced on Monday that the Chinese economy grew 6.6 percent in 2018, which was the slowest pace since 1990. Meanwhile, the official Xinhua News Agency reported that Chinese President Xi Jinping said the country needed to be on guard for “black swan” events while also preventing “grey rhino” events.

A black swan event is an unforeseen occurrence that has dire consequences whereas a grey rhino is an obvious threat that is ignored.

Overall, the bias in prices is: Upwards.

By the way, prices are vulnerable to a correction towards 26,526.48.

The projected upper bound is: 27,988.24.

The projected lower bound is: 26,053.77.

The projected closing price is: 27,021.00.

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 27 white candles and 23 black candles for a net of 4 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 81.6926. This is an overbought reading. However, a signal is not generated until the Oscillator crosses below 80 The last signal was a buy 19 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 60.21. 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 68 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 85. This is not a topping or bottoming area. The last signal was a sell 0 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 10 period(s) ago.

Rex Takasugi – TD Profile

HANG SENG INDEX closed down -191.090 at 27,005.449. Volume was 9% below average (neutral) and Bollinger Bands were 20% wider than normal.

Open High Low Close Volume___
27,189.40027,223.69926,854.66027,005.4491,627,267,712

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

Moving Averages: 10-period 50-period 200-period
Close: 26,773.02 26,162.95 27,929.17
Volatility: 21 24 23
Volume: 1,871,629,056 1,618,683,648 1,845,288,192

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 3.3% below its 200-period moving average and is in an upward trend. Volatility is relatively normal 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 6 periods.

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