Hong Kong: HANG SENG INDEX (.HSI) Drop as Rally Eases

Hong Kong: HANG SENG INDEX (.HSI) Drop as Rally Eases

Hong Kong: HANG SENG INDEX (.HSI) Drop as Rally Eases

Asian stocks dropped Wednesday as the positive sentiment at the start of the week faded on continuing global growth concerns. The pound steadied ahead of a further Brexit vote.

Shares slipped from Sydney to Shanghai, while futures signaled lower starts in Europe and the U.S. Earlier, the S&P 500 Index closed slightly higher. Treasuries steadied after yields fell Tuesday in the wake of softer inflation data that bolstered bets the Federal Reserve will remain patient. Australia’s dollar slid with bond yields after weak consumer confidence data reinforced a deteriorating outlook for the economy. The dollar ticked higher.

Here are some of the key events coming up:

  • Chinese retail sales and industrial production data are scheduled for release this week. The National People’s Congress is set to wrap up on Friday.
  • Bank of Japan Governor Haruhiko Kuroda will speak on Friday, after he and his board meet to decide on monetary policy.

Overall, the bias in prices is: Upwards.

Note: this chart shows extraordinary price action to the upside.

The projected upper bound is: 29,661.09.

The projected lower bound is: 28,047.07.

The projected closing price is: 28,854.08.

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 32 white candles and 18 black candles for a net of 14 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 60.7227. This is not an overbought or oversold reading. The last signal was a buy 1 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 57.48. 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 11 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 10. This is not a topping or bottoming area. The last signal was a buy 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 9 period(s) ago.

Rex Takasugi – TD Profile

HANG SENG INDEX closed down -132.969 at 28,787.900. Volume was 53% below average (consolidating) and Bollinger Bands were 39% narrower than normal.

Open High Low Close Volume___
28,924.27928,924.27928,690.36928,787.900 831,948,352

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

Moving Averages: 10-period 50-period 200-period
Close: 28,762.41 27,613.31 27,559.44
Volatility: 18 19 23
Volume: 1,992,455,808 1,841,129,216 1,866,450,688

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 4.5% above its 200-period moving average and is in an downward 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 bearish on .HSI and have had this outlook for the last 0 periods.

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