Hong Kong: HANG SENG INDEX (.HSI) continues to slump

Hong Kong: HANG SENG INDEX (.HSI) continues to slump

Hong Kong: HANG SENG INDEX (.HSI) continues to slump

Asian stocks fell on Monday as weekend U.S.-Canada trade talks ended with no deal and data showed China’s manufacturing sector recorded the weakest growth in 14 months in August.

After contentious U.S.-Canada trade talks ended on Friday with no deal to revamp the North American Free Trade Agreement (NAFTA), U.S. President Donald Trump said that Canada “will be out” of the deal unless the revised version is “fair” to America.

The talks would resume on Wednesday with the aim of eventually hammering out a trilateral deal.

Chinese shares ended slightly lower after a private survey showed that China’s manufacturing activity growth slowed in August on weaker new orders.

China’s Shanghai Composite index ended down 0.17 percent at 2,720.73 while Hong Kong’s Hang Seng index shed 0.63 percent to finish at 27,712.54.

Overall, the bias in prices is: Downwards.

The projected upper bound is: 28,495.00.

The projected lower bound is: 26,865.03.

The projected closing price is: 27,680.02.

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 23 white candles and 27 black candles for a net of 4 black 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 32.1609. This is not an overbought or oversold reading. The last signal was a sell 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 43.84. 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 45 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 sell 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 buy 7 period(s) ago.

Rex Takasugi – TD Profile

HANG SENG INDEX closed down -176.012 at 27,712.539. Volume was 23% below average (neutral) and Bollinger Bands were 12% narrower than normal.

Open High Low Close Volume___
27,809.44927,822.18927,577.03927,712.5391,440,080,128

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

Moving Averages: 10-period 50-period 200-period
Close: 27,994.72 28,228.90 29,960.29
Volatility: 17 18 21
Volume: 1,670,287,232 1,833,226,496 2,141,951,872

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 7.5% 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 3 periods.

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