Hong Kong: HANG SENG INDEX (.HSI) Expected to Rise, Investors focus on more stimulus to support the island city’s faltering growth amid political unrest
Hong Kong stocks closed higher on Thursday, on hopes of more stimulus to support the island city’s faltering growth amid political unrest.
The Hang Seng index rose 0.9% to 26,797.95, while the China Enterprises Index gained 0.8% to 10,532.85.
The city has announced more measures to bolster growth for the Chinese-ruled city battered by political unrest and facing its first recession in a decade.
Massive and violent anti-government protests over the past five months have shaken Hong Kong’s reputation as an Asian financial centre and damaged its all important tourism and retail sectors, with many businesses forced to close.
Hong Kong’s legislature on Wednesday formally withdrew planned legislation that would have allowed extraditions to mainland China, meeting one of five demands of pro-democracy protesters but unlikely to end months of often violent unrest.
Overall, the bias in prices is: Sideways.
The projected upper bound is: 27,588.06.
The projected lower bound is: 26,068.51.
The projected closing price is: 26,828.28.
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 22 white candles and 28 black candles for a net of 6 black candles.
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 47.7480. This is not an overbought or oversold reading. The last signal was a sell 3 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 58.19. 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 46 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 62. This is not a topping or bottoming area. The last signal was a sell 3 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 buy 8 period(s) ago.
Rex Takasugi – TD Profile
HANG SENG INDEX closed up 231.219 at 26,797.949. Volume was 6% below average (neutral) and Bollinger Bands were 28% narrower than normal.
Open High Low Close Volume___
Short Term: Overbought
Intermediate Term: Bullish
Long Term: Bearish
Moving Averages: 10-period 50-period 200-period
Close: 26,644.31 26,272.05 27,690.08
Volatility: 16 18 19
Volume: 1,564,103,552 1,679,314,432 1,786,355,968
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 3.2% below 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 5 periods.