Hong Kong: HANG SENG INDEX (.HSI) continues rally, most Asian markets up
Hong Kong stocks closed higher on Wednesday, a second consecutive day of gains as concerns eased about the economic impact of the coronavirus outbreak in China.
The Hang Seng Index rose 0.9 percent, to 27,823.
On the mainland, the Shanghai Composite Index closed 0.9 percent, higher at 2,926. The Shenzhen Composite Index rose 1.6 percent, to close at 1,785.
Tokyo’s benchmark Nikkei 225 index closed 0.7 percent higher. Sydney gained 0.5 percent and Singapore rose 1.2 percent.
The positive morning following fresh record closes by the S&P 500 and the Nasdaq in New York on Tuesday.
“Despite the doom and gloom being shown in the real economy, Asian equity markets are a sea of green today. COVID-19 fears have been shrugged off, with regional markets preferring to follow Wall Street’s lead,” said Jeffrey Halley, senior market analyst for Asia-Pacific at Oanda.
“Unfortunately, seas of green are often associated with algal blooms, which tend to suffocate all life in the water within them. The rallies of the past two days should be approached with caution.”
Overall, the bias in prices is: Upwards.
The projected upper bound is: 28,801.90.
The projected lower bound is: 26,880.21.
The projected closing price is: 27,841.05.
A white body occurred (because prices closed higher than they opened).
During the past 10 bars, there have been 7 white candles and 3 black candles for a net of 4 white candles. During the past 50 bars, there have been 27 white candles and 23 black candles for a net of 4 white candles.
Three white candles occurred in the last three days. Although these candles were not big enough to create three white soldiers, the steady upward pattern is bullish.
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 82.5181. 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 53.38. 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 26 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 73. This is not a topping or bottoming area. The last signal was a buy 6 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 1 period(s) ago.
Rex Takasugi – TD Profile
HANG SENG INDEX closed up 239.779 at 27,823.660. Volume was 15% above average (neutral) and Bollinger Bands were 76% wider than normal.
Open High Low Close Volume___
Short Term: Neutral
Intermediate Term: Bearish
Long Term: Bullish
Moving Averages: 10-period 50-period 200-period
Close: 27,012.83 27,603.59 27,345.03
Volatility: 26 22 20
Volume: 2,050,972,800 1,610,099,200 1,665,581,568
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 1.8% above its 200-period moving average and is in an downward 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 bearish on .HSI and have had this outlook for the last 10 periods. Our momentum oscillator has set a new 14-period high while the security price has not. This is a bullish divergence.
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