Hong Kong: HANG SENG INDEX (.HSI) decline amid US political uncertainty

Hong Kong: HANG SENG INDEX (.HSI) decline amid US political uncertainty

Hong Kong: HANG SENG INDEX (.HSI) decline amid US political uncertainty

Asia markets slipped on Wednesday as investors watched for developments in the United States after lawmakers launched an impeachment inquiry into President Donald Trump.

Mainland Chinese stocks slipped on the day, with the Shanghai composite down 1% to about 2,955.43 and Shenzhen component declining 1.43% to 9,671.06. The Shenzhen composite shed 1.608% to around 1,638.77.

Hong Kong’s Hang Seng index also fell 1.27%, as of its final hour of trading.

U.S. House Speaker Nancy Pelosi announced the inquiry after meeting with key leaders in the House committee and the Democratic leadership team.

Tuesday’s announcement came after reports about a phone call earlier this year between Trump and Ukraine’s leader, Volodymyr Zelensky. The U.S. president allegedly pressured Zelensky to investigate Democratic presidential hopeful Joe Biden’s family. Trump said on Tuesday he would release the full transcript of the controversial call.

Just three American presidents before Trump have faced serious impeachment proceedings, but Congress has never booted one from the White House. Even if Democrats eventually impeach Trump, the Republican-held Senate may never find him guilty and remove him from office.

Technical Indicators

Overall, the bias in prices is: Downwards.

The projected upper bound is: 26,775.38.

The projected lower bound is: 25,009.41.

The projected closing price is: 25,892.39.

Candlesticks

A black body occurred (because prices closed lower than they opened).
During the past 10 bars, there have been 1 white candles and 9 black candles for a net of 8 black candles. During the past 50 bars, there have been 19 white candles and 31 black candles for a net of 12 black 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. There have been 10 falling windows in the last 50 candles–this makes the current falling window even more bearish. The two candles preceding the falling window were black, which makes this pattern even more bearish.

Three black candles occurred in the last three days. Although these candles were not big enough to create three black crows, the steady downward pattern is bearish.

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 6.6996. This is an oversold reading. However, a signal is not generated until the Oscillator crosses above 20 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 39.15. 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 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 -168.This is an oversold reading. However, a signal isn’t generated until the indicator crosses above -100. The last signal was a sell 7 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 2 period(s) ago.

Rex Takasugi – TD Profile

HANG SENG INDEX closed down -335.650 at 25,945.350. Volume was 4% above average (neutral) and Bollinger Bands were 12% narrower than normal.

Open     High      Low     Close     Volume___
26,162.71126,190.56125,917.68025,945.3501,762,622,336
Technical Outlook 
Short Term: Oversold
Intermediate Term: Bullish
Long Term: Bearish
Moving Averages: 10-period     50-period     200-period
Close: 26,646.26 26,663.97 27,668.32
Volatility: 13 21 20
Volume: 1,636,684,800 1,703,922,432 1,800,041,984

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 6.2% below its 200-period moving average and is in an upward 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 bullish on .HSI and have had this outlook for the last 12 periods.

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