Hong Kong: HANG SENG INDEX (.HSI) Global Brands hits 3 month high

Hong Kong: HANG SENG INDEX (.HSI) Global Brands hits 3 month high

Hong Kong: HANG SENG INDEX (.HSI) Global Brands hits 3 month high

Shares of Global Brands Group Holding Ltd surge 54 pct to HK$0.47, their highest since March 27.

Differential Brands Group Inc plans to buy most of the Hong Kong-based Global Brands’ North American licensing business for $1.38 bln in cash.

Global Brands, with market value of about $480 mln, plans to pay a special dividend, totalling $356 mln, to shareholders upon completion of the deal.

As of 0154 GMT, about 214.4 mln shares have been traded, compared with their 30-day moving average volume of 36.58 mln.

Hong Kong benchmark index .HSI eases 0.1 pct.

Overall, the bias in prices is: Downwards.

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

By the way, prices are vulnerable to a correction towards 30,120.87.

The projected upper bound is: 29,433.92.

The projected lower bound is: 27,487.99.

The projected closing price is: 28,460.96.

Candlesticks

A white body occurred (because prices closed higher 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 23 white candles and 27 black candles for a net of 4 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 16.9077. This is an oversold reading. However, a signal is not generated until the Oscillator crosses above 20 The last signal was a sell 13 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 29.69. This is where it usually bottoms. The RSI usually forms tops and bottoms before the underlying security. A buy or sell signal is generated when the RSI moves out of an overbought/oversold area. The last signal was a buy 89 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 -115.This is an oversold reading. However, a signal isn’t generated until the indicator crosses above -100. The last signal was a sell 13 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 9 period(s) ago.

Rex Takasugi – TD Profile

HANG SENG INDEX closed up 141.061 at 28,497.320. Volume was 29% above average (neutral) and Bollinger Bands were 68% wider than normal.

Open High Low Close Volume___
28,368.01028,567.28928,169.10028,497.3202,648,867,584

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

Moving Averages: 10-period 50-period 200-period
Close: 29,324.51 30,418.26 29,962.31
Volatility: 20 20 21
Volume: 2,516,976,128 1,981,436,672 2,153,423,360

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 4.9% 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 7 periods. Our momentum oscillator is currently indicating that .HSI is currently in an oversold condition.

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