Hong Kong: HANG SENG INDEX (.HSI) ekes out a gain, as main board turnover slips to a week low

Hong Kong: HANG SENG INDEX (.HSI) ekes out a gain, as main board turnover slips to a week low

Hong Kong: HANG SENG INDEX (.HSI) ekes out a gain, as main board turnover slips to a week low

The blue chip index recovered some lost ground from the previous session, edging up 0.1 per cent at 28,146.5.

But main board turnover dropped 10 per cent to HK$61.7 billion, its lowest in a week.

On Monday, the Hang Seng was weighed down by nearly two months of protests that have rocked the city. The demonstrations deteriorated over the weekend as clashes turned more violent after protesters ignored a police ban and staged protests in key districts of Hong Kong.

Performance of property developers was mixed today. But Wharf Real Estate Investment (1997 HK) was the top gainer on the Hang Seng, rising 2.5 per cent to HK$49.6. Others that were affected by concerns on weak retail and property market outlook on Monday also bounced back. The city’s rail operator MTR (66 HK), which is deeply involved in property development, went up 0.5 per cent to HK$52.35, while Sun Hung Kai Properties (16 HK) was up 0.5 per cent at HK$127.80.

The biggest index point gainers were China Life Insurance (2628 HK), which was up 1.5 per cent to HK$20.45, and index heavyweight Tencent (700 HK), which rose 0.3 per cent to HK$373.2. 

China Life said it expects its first half bottom line to grow between 115 per cent and 135 per cent from a year earlier.

Overall, the bias in prices is: Sideways.

By the way, prices are vulnerable to a correction towards 28,194.81.

The projected upper bound is: 28,871.48.

The projected lower bound is: 27,429.52.

The projected closing price is: 28,150.50.

Candlesticks

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 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 21.7366. This is not an overbought or oversold reading. The last signal was a sell 6 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 45.16. 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 36 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 -177.This is an oversold reading. However, a signal isn’t generated until the indicator crosses above -100. The last signal was a buy 14 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 6 period(s) ago.

Rex Takasugi – TD Profile

HANG SENG INDEX closed up 40.090 at 28,146.500. Volume was 34% below average (neutral) and Bollinger Bands were 54% narrower than normal.

Open     High      Low     Close     Volume___
28,059.82028,274.65028,059.82028,146.5001,183,052,544
Technical Outlook 
Short Term: Neutral
Intermediate Term: Bearish
Long Term: Bullish
Moving Averages: 10-period     50-period     200-period
Close: 28,442.70 27,976.08 27,578.38
Volatility: 13 16 21
Volume: 1,162,198,528 1,615,928,576 1,802,500,480

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 2.1% above its 200-period moving average and is in an downward trend. Volatility is extremely low when compared to the average volatility over the last 10 periods. There is a good possibility that there will be an increase in volatility along with sharp price fluctuations in the near future. 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 1 periods.

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