Hong Kong: HANG SENG INDEX (.HSI) falls on scepticism over magnitude of new relief package
Hong Kong’s stocks dropped by the most in two weeks on angst that a HK$2 billion (US$254 million) relief package would do little to revive growth at the former British colony that has been roiled by anti-government protests.
The Hang Seng sank 0.8 per cent, or 219.47 points, to 26,566.73 at the close on Wednesday, its worst performance since October 4. The mainland’s Shanghai Composite Index also fell, retreating 0.4 per cent to 2,941.62.
While the Hong Kong government on Tuesday night unveiled the relief measures aimed to resurrect the tourism and logistic industries that have borne the brunt of the political unrest, investors including Alan Li at Atta Capital were not pleased, saying other factors like the China-US trade conflict would continue to weigh on the economy. The latest economic aid followed a package of HK$1.4 billion in October and one worth HK$19.1 billion in August.
The decline on Hong Kong’s market was broad-based, with all but five companies in the 50-constituent Hang Seng Index finishing the day lower.
Overall, the bias in prices is: Sideways.
The projected upper bound is: 27,373.46.
The projected lower bound is: 25,789.68.
The projected closing price is: 26,581.57.
A big black candle occurred. This is bearish, as prices closed significantly lower than they opened. If the candle appears when prices are “high,” it may be the first sign of a top. If it occurs when prices are confronting an overhead resistance area (e.g., a moving average, trendline, or price resistance level), the long black candle adds credibility to the resistance. Similarly, if the candle appears as prices break below a support area, the long black candle confirms the failure of the support area.
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 21 white candles and 29 black candles for a net of 8 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 45.1650. 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 53.53. 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 45 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 50. This is not a topping or bottoming area. The last signal was a sell 2 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 7 period(s) ago.
Rex Takasugi – TD Profile
HANG SENG INDEX closed down -219.469 at 26,566.730. Volume was 20% below average (neutral) and Bollinger Bands were 31% 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: 26,535.31 26,241.72 27,685.32
Volatility: 16 19 19
Volume: 1,557,853,824 1,688,961,664 1,783,132,672
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 4.0% 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 4 periods.
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