Hong Kong: HANG SENG INDEX (.HSI) falls to near four-week low

Hong Kong: HANG SENG INDEX (.HSI) falls to near four-week low

Hong Kong: HANG SENG INDEX (.HSI) falls to near four-week low

Hong Kong share market closed near four-week low on Thursday, 25 April 2019, registering the fifth consecutive day of losses, amid combination of the market concern over China central bank’s shift away from further broad easing moves and the risk of a strengthening US dollar, which could entice foreign investors to withdraw capital out of Hong Kong dollar and yuan assets. At closing bell, the Hang Seng Index declined 0.86%, or 256.03 points, to 29,549.80. The Hang Seng China Enterprises Index sank 161.74 points or 1.39% to 11,502.04.

Financial stocks led the index lower, with Ping An Insurance (2318 HK) down 2.12% to HK$92.15, and China Construction Bank (939 HK) falling 0.72% to HK$6.91.months to March 31, to between 250 million yuan and 350 million yuan.

China Minsheng Banking (1988 HK) slid 2.2%, on the heels of influential shareholder activist David Webb saying it was “very likely” the unidentified “bank within a Mainland-based banking group” that triggered a warning circular against risky lending practices from the Hong Kong Monetary Authority and the Securities and Futures Commission.

The Hong Kong Monetary Authority said in a statement Wednesday that the two had conducted joint inspections of an unidentified bank and other entities in Hong Kong, and found they had entered into a series of complex transactions that give rise to a number of serious concerns. The de-facto central bank said these opaque financing arrangements may conceal embedded financial risks and make it difficult to conduct rigorous risk assessment.

Overall, the bias in prices is: Upwards.

By the way, prices are vulnerable to a correction towards 28,758.53.

The projected upper bound is: 30,303.69.

The projected lower bound is: 28,852.15.

The projected closing price is: 29,577.92.

Candlesticks

A black body occurred (because prices closed lower than they opened).
During the past 10 bars, there have been 4 white candles and 6 black candles for a net of 2 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 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 25.5919. This is not an overbought or oversold reading. The last signal was a sell 8 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 50.14. 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 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 -228.This is an oversold reading. However, a signal isn’t generated until the indicator crosses above -100. The last signal was a sell 9 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 4 period(s) ago.

Rex Takasugi – TD Profile

HANG SENG INDEX closed down -256.029 at 29,549.801. Volume was 7% below average (neutral) and Bollinger Bands were 7% wider than normal.

Open High Low Close Volume___
29,667.52029,849.69929,535.19929,549.8011,695,343,488

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

Moving Averages: 10-period 50-period 200-period
Close: 29,921.62 29,122.39 27,472.94
Volatility: 11 16 22
Volume: 1,941,598,336 1,987,282,304 1,823,275,776

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 7.6% above its 200-period moving average and is in an upward 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 moderate flows of volume into .HSI (mildly bullish). Our trend forecasting oscillators are currently bullish on .HSI and have had this outlook for the last 14 periods.

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