Hong Kong: HANG SENG INDEX (.HSI) Extends Gains

Hong Kong: HANG SENG INDEX (.HSI) Extends Gains

Hong Kong: HANG SENG INDEX (.HSI) Extends Gains

Asian stocks rose broadly on Tuesday amid receding trade worries after the United States and Mexico agreed to overhaul the North American Free Trade Agreement (NAFTA).

U.S. President Donald Trump also indicated the U.S. would soon begin negotiations with Canada, but suggested that any agreement could be a separate deal. Investors expect Canada too would agree to the new terms to preserve a three-nation pact.

China’s Shanghai Composite index slid 2.92 points or 0.10 percent to 2,777.98 ahead of factory PMI data due Friday. Hong Kong’s Hang Seng index rose 0.28 percent to 28,351.62.

Overall, the bias in prices is: Downwards.

The projected upper bound is: 29,203.74.

The projected lower bound is: 27,421.18.

The projected closing price is: 28,312.46.

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 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 76.4173. This is not an overbought or oversold reading. The last signal was a sell 2 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 54.33. 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 41 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 112.This is an overbought reading. However, a signal isn’t generated until the indicator crosses below 100. The last signal was a buy 6 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 80.350 at 28,351.619. Volume was 10% below average (neutral) and Bollinger Bands were 13% narrower than normal.

Open High Low Close Volume___
28,530.89128,579.64128,234.52928,351.6191,702,396,672

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

Moving Averages: 10-period 50-period 200-period
Close: 27,700.07 28,341.26 29,977.56
Volatility: 20 20 21
Volume: 1,803,525,760 1,915,719,424 2,152,596,224

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 5.4% below its 200-period moving average and is in an downward 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 bearish on .HSI and have had this outlook for the last 8 periods. Our momentum oscillator has set a new 14-period high while the security price has not. This is a bullish divergence.

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