Hong Kong: HANG SENG INDEX (.HSI) Fairly Flat Amid Growth Concerns

Hong Kong: HANG SENG INDEX (.HSI) Fairly Flat Amid Growth Concerns

Hong Kong: HANG SENG INDEX (.HSI) Fairly Flat Amid Growth Concerns

Stocks in Asia struggled for direction on Tuesday as weak economic data in Europe fuelled fears of slowing growth and weighed on investor sentiment.

Japanese markets returned from a long weekend Tuesday, as the Nikkei 225 gained 19.75 points, or 0.1%, to 22,098.84, despite shares of index heavyweights Fast Retailing sinking 1.2%, and Softbank Group declining 1.8%.

The Japanese yen traded at 107.59 per U.S. dollar after seeing an earlier high of 107.46.

In Hong Kong, the Hang Seng Index regained 58.6 points, or 0.2%, to 26,281.
Shares of Anheuser-Busch InBev’s Asian business were priced at HK$27 apiece, the bottom of the range in the firm’s second attempt at listing in Hong Kong. The stock is scheduled to start trading on Sept. 30.

Data released Monday stoked fears of a deteriorating global economic outlook. Manufacturing activity in Germany fell to its lowest level since the financial crisis this month, data from IHS Markit showed. Germany’s services sector also grew at its slowest pace in nine months.

Overall, manufacturing in the euro-zone fell to a more than six-year low while services grew at its slowest pace in eight months.
The Australian dollar was at $0.6773 following its decline from levels above $0.685 seen last week.

CHINA

In China, the CSI 300 restored 10.42 points, or 0.3%, to 3,901.08
On the trade front, Chinese importers bought 10 boatloads of U.S. soybeans following last week’s trade negotiations between the two economic powerhouses.

In other markets

  • In Korea, the Kospi index added 9.34 points, or 0.5%, to 2,101.04
  • In Taiwan, the Taiex Index eased back 1.01 points to 10,918.01
  • In Singapore, the Straits Times Index regained 12.22 points, or 0.4%, to 3,155.46.
  • In New Zealand, the NZX 50 dropped 14.62 points, or 0.1%, to 10,858.71
  • In Australia, the ASX 200 moved lower 0.85 points to 6,748.87

Technical Indicators

Overall, the bias in prices is: Downwards.

The projected upper bound is: 27,108.90.

The projected lower bound is: 25,359.55.

The projected closing price is: 26,234.23.

Candlesticks

A black body occurred (because prices closed lower than they opened).
During the past 10 bars, there have been 2 white candles and 8 black candles for a net of 6 black candles. During the past 50 bars, there have been 20 white candles and 30 black candles for a net of 10 black candles.

A spinning top occurred (a spinning top is a candle with a small real body). Spinning tops identify a session in which there is little price action (as defined by the difference between the open and the close). During a rally or near new highs, a spinning top can be a sign that prices are losing momentum and the bulls may be in trouble.

Three black candles occurred in the last three days. Although these candles were not big enough to create three black crows, the steady downward pattern is bearish.

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 8.4334. This is an oversold reading. However, a signal is not generated until the Oscillator crosses above 20 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 44.62. 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 26 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 -124.This is an oversold reading. However, a signal isn’t generated until the indicator crosses above -100. The last signal was a sell 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 sell 1 period(s) ago.

Rex Takasugi – TD Profile

HANG SENG INDEX closed up 58.600 at 26,281.000. Volume was 22% above average (neutral) and Bollinger Bands were 9% narrower than normal.

Open     High      Low     Close     Volume___
26,300.21126,391.98026,207.27026,281.0002,089,366,016
Technical Outlook 
Short Term: Oversold
Intermediate Term: Bullish
Long Term: Bearish
Moving Averages: 10-period     50-period     200-period
Close: 26,767.63 26,716.93 27,671.13
Volatility: 17 21 20
Volume: 1,667,647,104 1,688,266,752 1,801,542,400

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 5.0% below its 200-period moving average and is in an upward 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 bullish on .HSI and have had this outlook for the last 11 periods.

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