Hong Kong: HANG SENG INDEX (.HSI) extending gains from the previous session

Hong Kong: HANG SENG INDEX (.HSI) extending gains from the previous session

Hong Kong: HANG SENG INDEX (.HSI) extending gains from the previous session

Asian stocks closed higher on Friday session, extending gains from the previous session, following the overnight rebound on Wall Street as investors shifted focus to the upcoming corporate earnings season amid a lack of escalation in U.S. and China trade tensions.

Moreover, Friday’s extended recovery in markets also followed the relative calm on the trade front overnight, with the Chinese commerce ministry saying Thursday that China had not been in touch with the U.S. about restarting trade talks.

Furthermore, U.S. Treasury Secretary Steven Mnuchin said Yesterday that bilateral talks on trade could resume on the condition that China was open to making “serious efforts” to change.

Over to Mainland China, the Shanghai Composite fell 0.22 percent to close the session at 2,831.55, but the smaller Shenzhen composite gained 0.46 percent to end the session at 1,604.45.

Hong Kong’s main benchmark Hang Seng rose by 0.16 percent to trade at 28,525.44 at the close, supported by gains in the Consumer Non-Cyclicals, Technology, and Healthcare sectors.

Overall, the bias in prices is: Downwards.

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

By the way, prices are vulnerable to a correction towards 29,809.69.

The projected upper bound is: 29,420.71.

The projected lower bound is: 27,538.85.

The projected closing price is: 28,479.78.

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 26 white candles and 24 black candles for a net of 2 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 48.7457. This is not an overbought or oversold reading. The last signal was a buy 9 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 39.50. 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 9 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 14. This is not a topping or bottoming area. The last signal was a buy 5 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 3 period(s) ago.

Rex Takasugi – TD Profile

HANG SENG INDEX closed up 44.609 at 28,525.439. Volume was 27% below average (neutral) and Bollinger Bands were 17% wider than normal.

Open High Low Close Volume___
28,689.18028,715.35928,500.51028,525.4391,494,623,360

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

Moving Averages: 10-period 50-period 200-period
Close: 28,492.88 30,041.05 29,996.39
Volatility: 19 20 21
Volume: 2,102,146,432 2,030,037,504 2,178,159,360

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 4.9% below its 200-period moving average and is in an downward trend. Volatility is relatively normal as compared to the average volatility over the last 10 periods. Our volume indicators reflect moderate flows of volume out of .HSI (mildly bearish). Our trend forecasting oscillators are currently bearish on .HSI and have had this outlook for the last 17 periods.

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