Hong Kong: HANG SENG INDEX (.HSI) fell amid dampened expectations on the Fed cutting rates this month

Hong Kong: HANG SENG INDEX (.HSI) fell amid dampened expectations on the Fed cutting rates this month

Hong Kong: HANG SENG INDEX (.HSI) fell amid dampened expectations on the Fed cutting rates this month

Asia Pacific stocks mostly declined on Tuesday amid dampened expectations on the Fed cutting rates this month.

Mainland China shares mostly continued to fall after losses on Monday. The Shanghai composite edged down 0.18% to close at 2,928.23, while the Shenzhen component declined 0.14% to finish at 9,198.78. The Shenzhen composite rose 0.21% to close at 1,558.11.

Hong Kong’s Hang Seng index fell 0.68% in its final hour of trade. The city’s leader Carrie Lam said Tuesday that the controversial extradition bill that led to widespread anger and massive protests in the Asian financial hub “is dead.”

Meanwhile, investors are keeping an eye on testimony from Federal Reserve Chair Jerome Powell due Wednesday. It follows a stronger-than-expected jobs report in the U.S. that raised questions about whether the Fed will cut interest rates.

“The fate of stocks will be closely linked to rates pricing with stocks having rallied strongly on aggressive Fed rate cut expectations. US earnings season is also a focus, with the season kicking off next week,” said Tapas Strickland, director of economics and markets at the National Australia Bank.

“Under focus will be whether trade tensions are weighing further on profit growth,” he said, adding there may already be headwinds as he referred to sharply falling Apple iPhone sales in India.

Overall, the bias in prices is: Sideways.

The projected upper bound is: 28,970.54.

The projected lower bound is: 27,194.43.

The projected closing price is: 28,082.49.

Candlesticks

A black body occurred (because prices closed lower than they opened).
During the past 10 bars, there have been 3 white candles and 7 black candles for a net of 4 black candles. During the past 50 bars, there have been 23 white candles and 27 black candles for a net of 4 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 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 22.7700. 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 48.27. 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 21 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 -104.This is an oversold reading. However, a signal isn’t generated until the indicator crosses above -100. The last signal was a sell 4 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 0 period(s) ago.

Rex Takasugi – TD Profile

HANG SENG INDEX closed down -215.410 at 28,116.279. Volume was 36% below average (neutral) and Bollinger Bands were 17% wider than normal.

Open High Low Close Volume___
28,299.73028,312.97128,080.73028,116.2791,256,159,744

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

Moving Averages: 10-period     50-period     200-period
Close: 28,532.13 28,158.33 27,489.64
Volatility: 17 20 22
Volume: 1,453,239,552 1,886,851,456 1,856,814,336

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 2.3% above 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 13 periods.

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