Hong Kong: HANG SENG INDEX (.HSI) gains aided by strong inflows from the mainland even as the protests subsided

Hong Kong: HANG SENG INDEX (.HSI) gains aided by strong inflows from the mainland even as the protests subsided

Hong Kong: HANG SENG INDEX (.HSI) gains aided by strong inflows from the mainland even as the protests subsided

Hong Kong stocks closed higher on Tuesday, extending a rally from the previous session, aided by strong inflows from the mainland even as the protests subsided.

The Hang Seng index ended up 1.0% at 27,498.77 points, while the China Enterprises Index closed 0.8% firmer at 10,507.65 points.

Hong Kong leader Carrie Lam said on Tuesday said she had heard the people “loud and clear” and apologised again for recent upheaval after some of the most violent protests in the city against an extradition bill that she had promoted.

Mainland investors via the Stock Connect linking Shanghai, Shenzhen and Hong Kong bought about 3 billion yuan ($433.01 million) worth of Hong Kong shares on Tuesday, marking their 17th straight session of net buying via the scheme, according to Refinitiv data.

However, gains were capped by investor caution ahead of the U.S. Federal Reserve policy decision.

The Fed, facing fresh demands by U.S. President Donald Trump to cut interest rates, begins a two-day meeting later on Tuesday. The central bank is expected to leave borrowing costs unchanged this time but possibly lay the groundwork for a rate cut later this year.

Overall, the bias in prices is: Downwards.

Note: this chart shows extraordinary price action to the downside.

The projected upper bound is: 28,252.22.

The projected lower bound is: 26,662.79.

The projected closing price is: 27,457.50.

Candlesticks

A white body occurred (because prices closed higher than they opened).
During the past 10 bars, there have been 5 white candles and 5 black candles. During the past 50 bars, there have been 24 white candles and 26 black candles for a net of 2 black 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 48.1302. This is not an overbought or oversold reading. 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 47.13. 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 7 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 76. This is not a topping or bottoming area. 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 buy 7 period(s) ago.

Rex Takasugi – TD Profile

HANG SENG INDEX closed up 271.609 at 27,498.770. Volume was 19% below average (neutral) and Bollinger Bands were 41% narrower than normal.

Open High Low Close Volume___
27,289.69927,584.11927,201.02027,498.7701,598,571,904

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

Moving Averages: 10-period 50-period 200-period
Close: 27,243.77 28,566.09 27,434.21
Volatility: 19 18 22
Volume: 1,845,664,896 2,006,199,040 1,872,756,992

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 0.2% above 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 28 periods.

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