Hong Kong: HANG SENG INDEX (.HSI) concerns surrounding global growth mounted

Hong Kong: HANG SENG INDEX (.HSI) concerns surrounding global growth mounted

Hong Kong: HANG SENG INDEX (.HSI) concerns surrounding global growth mounted

Stock markets across Asia sank on Friday as concerns surrounding global growth mounted, with the region’s benchmark index posting its biggest plunge of the year.

Chinese shares fell the most as traders took a sell rating from the nation’s largest brokerage as a sign that the Chinese government wants to slow down the rally.

The MSCI Asia Pacific Index dropped 1.4 percent as China’s trade slumped amid continued uncertainty from the US-China trade spat, with exports falling and imports weakening last month.

The index fell 1.9 this week.

With the first back-to-back losses of the year for the Asian benchmark, the region’s equities erased US$384 billion in 10 trading days.

Hong Kong’s Hang Seng Index lost 1.9 percent on Friday.

Overall, the bias in prices is: Upwards.

The projected upper bound is: 29,073.21.

The projected lower bound is: 27,487.83.

The projected closing price is: 28,280.52.

Candlesticks

A black body occurred (because prices closed lower than they opened).
During the past 10 bars, there have been 4 white candles and 6 black candles for a net of 2 black candles. During the past 50 bars, there have been 32 white candles and 18 black candles for a net of 14 white candles.

A falling window occurred (where the bottom of the previous shadow is above the top of the current shadow). This usually implies a continuation of a bearish trend.

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 26.6235. This is not an overbought or oversold reading. The last signal was a sell 7 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 48.77. 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 8 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 -149.This is an oversold reading. However, a signal isn’t generated until the indicator crosses above -100. The last signal was a sell 1 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 6 period(s) ago.

Rex Takasugi – TD Profile

HANG SENG INDEX closed down -551.029 at 28,228.420. Volume was 73% above average (neutral) and Bollinger Bands were 37% narrower than normal.

Open High Low Close Volume___
28,409.14128,533.76028,201.09028,228.4203,091,752,192

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

Moving Averages: 10-period 50-period 200-period
Close: 28,790.08 27,426.74 27,594.50
Volatility: 14 19 23
Volume: 2,452,407,808 1,843,798,272 1,869,690,752

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 gapped down today (bearish) 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 2.3% 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 36 periods. our momentum oscillator has set a new 14-period low while the security price has not. This is a bearish divergence.

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