Hong Kong: HANG SENG INDEX (.HSI) drops as impact of virus weighs down Asia

Hong Kong: HANG SENG INDEX (.HSI) drops as impact of virus weighs down Asia

Hong Kong: HANG SENG INDEX (.HSI) drops as impact of virus weighs down Asia

Hong Kong stocks finished down on Thursday after a negative cue from Wall Street and with investors worried about the ongoing economic impact of the coronavirus pandemic.

The Hang Seng Index dropped 0.6 percent, to close at 24,006.

On the mainland, the Shanghai Composite Index rose 0.3 percent, to close at 2,819.

And the Shenzhen Composite Index ended 0.5 percent, higher at 1,744.

The woes on Wall Street discouraged traders in Asia, where Tokyo closed down 1.3 percent, and Sydney lost 0.9 percent and Taipei shed 0.7 percent.

Seoul was flat, while Singapore was up 0.7 percent.

There was more bad news on oil markets, with the International Energy Agency warning that 2020 was likely to be “the worst year in the history” of the sector.

Oil has plummeted in recent weeks to multi-year lows as coronavirus lockdowns depressed demand, and the crisis was made worse by a pricing war between top producers Saudi Arabia and Russia.

Riyadh, Moscow and other producers agreed to an output cut but investors are worried that the dramatic production curbs will not be enough to stabilise the crude market.

Brent Crude was down 0.4 percent, while West Texas Intermediate was up 0.6 percent but still just under the US$20-a-barrel mark.

Technical Indicators

Overall, the bias in prices is: Downwards.

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

The projected upper bound is: 25,451.36.

The projected lower bound is: 22,454.75.

The projected closing price is: 23,953.06.

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 27 white candles and 23 black candles for a net of 4 white candles.

A spinning top occurred (a spinning top is a candle with a small real body). Spinning tops identify a session in which there is little price action (as defined by the difference between the open and the close). During a rally or near new highs, a spinning top can be a sign that prices are losing momentum and the bulls may be in trouble.

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 58.8034. This is not an overbought or oversold reading. The last signal was a sell 0 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 48.85. 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 15 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 48. This is not a topping or bottoming area. The last signal was a sell 0 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 13 period(s) ago.

Rex Takasugi – TD Profile

HANG SENG INDEX closed down -138.891 at 24,006.449. Volume was 12% below average (neutral) and Bollinger Bands were 2% wider than normal.

Open High Low Close Volume___
24,025.44924,102.91023,854.78924,006.4491,865,473,408
Technical Outlook
Short Term: Overbought
Intermediate Term: Bullish
Long Term: Bearish
Moving Averages: 10-period 50-period 200-period
Close: 23,846.23 25,201.58 26,636.61
Volatility: 27 40 27
Volume: 2,106,935,168 2,578,592,256 1,819,128,448

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 9.9% 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 2 periods.

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