Hong Kong: HANG SENG INDEX (.HSI) firm on continued trade optimism and surging crude oil prices

Hong Kong: HANG SENG INDEX (.HSI) firm on continued trade optimism and surging crude oil prices

Hong Kong: HANG SENG INDEX (.HSI) firm on continued trade optimism and surging crude oil prices

The Hong Kong stock market has climbed higher in four straight sessions, gathering almost 1,400 points or 5.5 percent along the way. The Hang Seng Index now rests just above the 26,460-point plateau and it’s expected to open higher again on Thursday.

The global forecast for the Asian markets is firm on continued trade optimism and surging crude oil prices. The European and U.S. markets were higher and the Asian bourses are tipped to open in slimier fashion.

The Hang Seng finished sharply higher on Wednesday with gains across the board – especially from the casinos, financials and oil and insurance companies.

For the day, the index soared 586.87 points or 2.27 percent to finish at 26,462.32 after trading between 26,192.65 and 26,597.07.

Among the actives, AAC Technologies surged 6.41 percent, while Sands China soared 4.59 percent, China Petroleum and Chemical (Sinopec) spiked 4.52 percent, China Mengniu Dairy jumped 4.31 percent, WH Group climbed 3.84 percent, Tencent Holdings advanced 3.80 percent, Galaxy Entertainment gathered 3.75 percent, China Life Insurance perked 3.62 percent, Industrial and Commercial Bank of China collected 3.08 percent, BOC Hong Kong accelerated 3.00 percent, AIA Group added 2.97 percent, Ping An Insurance gained 2.33 percent, CNOOC rose 2.25 percent, China Mobile was up 1.72 percent, Hong Kong & China Gas picked up 1.22 percent, New World Development climbed 0.54 percent and Hengan International was unchanged.

Overall, the bias in prices is: Sideways.

The projected upper bound is: 27,630.05.

The projected lower bound is: 25,481.19.

The projected closing price is: 26,555.62.

Candlesticks

A white body occurred (because prices closed higher than they opened).
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 28 white candles and 22 black candles for a net of 6 white candles.

Three white candles occurred in the last three days. Although these candles were not big enough to create three white soldiers, the steady upward pattern is bullish.

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 91.6230. This is an overbought reading. However, a signal is not generated until the Oscillator crosses below 80 The last signal was a buy 11 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 58.82. 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 60 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 173.This is an overbought reading. However, a signal isn’t generated until the indicator crosses below 100. The last signal was a buy 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 buy 2 period(s) ago.

Rex Takasugi – TD Profile

HANG SENG INDEX closed up 59.109 at 26,521.430. Volume was 11% above average (neutral) and Bollinger Bands were 27% narrower than normal.

Open High Low Close Volume___
26,391.77926,588.21126,212.34026,521.4301,999,014,272

Technical Outlook
Short Term: Overbought
Intermediate Term: Bearish
Long Term: Bearish

Moving Averages: 10-period 50-period 200-period
Close: 25,734.44 25,985.99 28,084.44
Volatility: 27 26 23
Volume: 1,635,657,216 1,684,664,320 1,870,497,152

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 5.6% below its 200-period moving average and is in an downward 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 bearish on .HSI and have had this outlook for the last 14 periods.

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