Hong Kong: HANG SENG INDEX (.HSI) falls as Asian investors run for cover
Hong Kong stocks ended sharply lower again on Wednesday, in line with a worldwide plunge as the extensive spread of the coronavirus fans fears about a severe hit to the global economy.
The Hang Seng Index retreated 0.7 percent, to close at 26,696.
On the mainland, the Shanghai Composite Index fell 0.8 percent, to 2,987 while the Shenzhen Composite Index fell 2.7 percent, to 1,890.
There was heavy selling across the region, after a day of relative calm caused by bargain-buying, followed another rout on Wall Street where all three main indexes lost around 3 percent.
Tokyo ended down 0.8 percent, as bargain hunters and a rising yen helped the index pare some losses.
Sydney shed more than 2 percent, while Seoul, Singapore, Wellington and Jakarta were all down more than 1 percent. Manila tumbled almost 4 percent as it resumed trading after a one-day holiday. Taipei and Bangkok were also well down.
However, the US dollar was being kept in check by speculation the Federal Reserve could cut interest rates to support markets, though for now officials are saying the US economy remains in rude health.
Overall, the bias in prices is: Downwards.
Note: this chart shows extraordinary price action to the downside.
The projected upper bound is: 27,663.29.
The projected lower bound is: 25,731.73.
The projected closing price is: 26,697.51.
A white body occurred (because prices closed higher than they opened).
During the past 10 bars, there have been 5 white candles and 5 black candles. During the past 50 bars, there have been 27 white candles and 23 black candles for a net of 4 white 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 13.4633. 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 38.09. 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 sell 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 -160.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.
The Moving Average Convergence/Divergence indicator (MACD) gives signals when it crosses its 9 period signal line. The last signal was a sell 2 period(s) ago.
Rex Takasugi – TD Profile
HANG SENG INDEX closed down -196.740 at 26,696.490. Volume was 29% above average (neutral) and Bollinger Bands were 0% narrower than normal.
Open High Low Close Volume___
Short Term: Oversold
Intermediate Term: Bearish
Long Term: Bearish
Moving Averages: 10-period 50-period 200-period
Close: 27,401.98 27,795.37 27,234.36
Volatility: 15 22 20
Volume: 1,690,264,576 1,664,345,472 1,662,233,728
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 2.0% below 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 20 periods.
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