Hong Kong: HANG SENG INDEX (.HSI) gains as Iran tensions ease, oil retreats
Hong Kong stocks finished on a positive note on Tuesday, clawing back some of the previous two days’ losses as Middle East concerns ease, while investors turn their focus back to the global economy.
The Hang Seng index added 0.3 percent, to 28,322.
On the mainland, the Shanghai Composite Index rose 0.7 percent, to 3,104 and the Shenzhen Composite Index jumped 1.3 percent, to 1,791.
In Tokyo, shares jumped 1.6 percent, propped up by gains on Wall Street and a breather in the yen’s rise amid US-Iran tensions. The Nikkei 225 index had lost nearly 2 percent on Monday.
Sydney climbed more than 1 percent, while Seoul jumped 1 percent and Singapore put on 0.7 percent. Manila, Mumbai and Bangkok were also up, while Wellington was marginally higher and Taipei eased slightly.
The shift back to riskier assets saw oil prices retreat, having rallied almost 7 percent in the previous two days. Gold slipped from six-and-a-half-year highs.
“Putting to one side the heat and noise of the events of the last few days, and in the absence of further violence and escalations, the reality is that very little has changed,” said CMC Market analyst Michael Hewson in a note.
Overall, the bias in prices is: Upwards.
Note: this chart shows extraordinary price action to the upside.
By the way, prices are vulnerable to a correction towards 27,391.80.
The projected upper bound is: 29,164.03.
The projected lower bound is: 27,541.06.
The projected closing price is: 28,352.54.
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 25 white candles and 25 black candles.
A spinning top occurred (a spinning top is a candle with a small real body). Spinning tops identify a session in which there is little price action (as defined by the difference between the open and the close). During a rally or near new highs, a spinning top can be a sign that prices are losing momentum and the bulls may be in trouble.
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 35.0514. 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 64.09. 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 2 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 75. This is not a topping or bottoming area. The last signal was a sell 1 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 15 period(s) ago.
Rex Takasugi – TD Profile
HANG SENG INDEX closed up 95.871 at 28,322.061. Volume was 15% below average (neutral) and Bollinger Bands were 46% wider than normal.
Open High Low Close Volume___
Short Term: Neutral
Intermediate Term: Bullish
Long Term: Bullish
Moving Averages: 10-period 50-period 200-period
Close: 28,191.98 27,186.17 27,550.63
Volatility: 12 19 19
Volume: 1,320,676,992 1,481,682,560 1,687,785,600
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 2.8% above its 200-period moving average and is in an upward trend. Volatility is low as compared to the average volatility over the last 10 periods. 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 13 periods.
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