Hong Kong: HANG SENG INDEX (.HSI) fell 3.4 per cent last week as the fallout from the protests hurts corporate earnings
Hong Kong stocks ended Friday as the world’s worst-performing major equity market after concerns heightened that the political unrest has already taken a heavy toll on the city’s economy.
The Hang Seng Index dropped 3.4 per cent for the week, delivering the steepest decline among the world’s major benchmarks. It slipped 0.1 per cent to 26,435.67 on Friday.
The protests, which started in June because of Hongkongers’ opposition to the now shelved extradition bill, have already weighed on retail sales by scaring away tourists and forcing shop closures. Local retailers including Sa Sa International Holdings and Esprit Holdings this week issued warnings that the tumult was hurting their businesses.
China’s Shanghai Composite Index rose 0.2 per cent to 3,006.45 on Friday after banks cut the one-year loan prime rate by five basis points and a development plan boosted infrastructure stocks.
“It’s a hangover that will linger on the Hong Kong market until the issue is really resolved,” said Shayne Heffernan, CEO and Founder of Heffx in Malaysia. “Before that, it’s what will mainly hold back stocks.”
Overall, the bias in prices is: Downwards.
The projected upper bound is: 27,268.46.
The projected lower bound is: 25,521.44.
The projected closing price is: 26,394.95.
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 22 white candles and 28 black candles for a net of 6 black candles.
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 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 8.7821. This is an oversold reading. However, a signal is not generated until the Oscillator crosses above 20 The last signal was a sell 4 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 47.01. 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 24 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 -49. This is not a topping or bottoming area. The last signal was a sell 4 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 23 period(s) ago.
Rex Takasugi – TD Profile
HANG SENG INDEX closed down -33.279 at 26,435.670. Volume was 15% above average (neutral) and Bollinger Bands were 2% narrower than normal.
Open High Low Close Volume___
Short Term: Oversold
Intermediate Term: Bullish
Long Term: Bearish
Moving Averages: 10-period 50-period 200-period
Close: 26,853.80 26,810.35 27,674.28
Volatility: 17 21 20
Volume: 1,674,062,080 1,669,054,848 1,799,538,816
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 4.5% 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 9 periods.
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