Hong Kong: HANG SENG INDEX (.HSI) edges higher helped by optimism for policy support from China as the National People’s Congress began in Beijing
Hong Kong shares edged higher on Wednesday morning, helped by optimism for policy support from China as the National People’s Congress began in Beijing this week.
The Hang Seng Index added 0.2% to 29,022.29 by noon. Internet services heavyweight Tencent Holdings rose 1.7%, taking its gains for the week so far to more than 9%.
Investor expectations over policy support from China have increased in recent months as Asia’s largest economy contends with a slowdown in growth and a trade war with the U.S. At the start of China’s parliament on Tuesday, Premier Li Keqiang laid out plans to reduce taxes in manufacturing, construction and transport industries, and to deepen reform for value added tax. Parliament will remain in session until March 15.
The Hang Seng Index ended little changed on Tuesday after the gauge climbed more than 12% for the year so far amid optimism that the U.S. and China will reach a trade deal.
Overall, the bias in prices is: Upwards.
Note: this chart shows extraordinary price action to the upside.
By the way, prices are vulnerable to a correction towards 27,691.23.
The projected upper bound is: 29,817.67.
The projected lower bound is: 28,321.30.
The projected closing price is: 29,069.49.
A white body occurred (because prices closed higher 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 33 white candles and 17 black candles for a net of 16 white candles.
A doji star occurred (where a doji gaps above or below the previous candle). This often signals a reversal with confirmation occurring on the next bar.
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 60.3107. This is not an overbought or oversold reading. The last signal was a sell 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 68.38. 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 6 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 101.This is an overbought reading. However, a signal isn’t generated until the indicator crosses below 100. The last signal was a sell 1 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 sell 4 period(s) ago.
Rex Takasugi – TD Profile
HANG SENG INDEX closed up 44.061 at 29,005.660. Volume was 32% below average (neutral) and Bollinger Bands were 31% narrower than normal.
Open High Low Close Volume___
Short Term: Overbought
Intermediate Term: Bullish
Long Term: Bullish
Moving Averages: 10-period 50-period 200-period
Close: 28,830.72 27,315.72 27,620.61
Volatility: 8 18 22
Volume: 2,267,357,952 1,799,098,112 1,857,314,176
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 5.0% above 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 34 periods. The security price has set a new 14-period high while our momentum oscillator has not. This is a bearish divergence.