Hong Kong: HANG SENG INDEX (.HSI) Govt relaxes rules on share buybacks

Hong Kong: HANG SENG INDEX (.HSI) Govt relaxes rules on share buybacks

Hong Kong: HANG SENG INDEX (.HSI) Govt relaxes rules on share buybacks

Stocks in China and Hong Kong edged higher on Monday after government departments and regulators rolled out a series of measures over the weekend to support the private sector, including steps to make share buybacks easier.

The Shanghai Composite index rose 0.7 percent to 2,616.29. The blue-chip CSI300 index was also up 0.7 percent.

Investors were encouraged after the government ramped up its support for private enterprises over the weekend, rolling out a series of measures, including a simplified process for listed companies to buy back shares, announced by the China Securities Regulatory Commission on Friday.

China will study and implement tax cuts of a larger scale and more significant fee reductions for companies, Finance Minister Liu Kun said on Monday, after the State Administration of Taxation’s chief told Xinhua that the department is planning tax cuts to back the private sector.

In Hong Kong, the Hang Seng Index was up 0.3 percent at 25,681.27, while the index for Chinese H-shares listed in Hong Kong was little changed.

Overall, the bias in prices is: Downwards.

The projected upper bound is: 26,755.89.

The projected lower bound is: 24,399.14.

The projected closing price is: 25,577.51.

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 21 white candles and 29 black candles for a net of 8 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 26.4182. This is not an overbought or oversold reading. The last signal was a sell 3 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 46.72. 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 20 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 19. This is not a topping or bottoming area. The last signal was a sell 2 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 31.260 at 25,633.180. Volume was 35% below average (neutral) and Bollinger Bands were 4% narrower than normal.

Open High Low Close Volume___
25,576.27925,765.96125,505.33025,633.1801,207,400,832

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

Moving Averages: 10-period 50-period 200-period
Close: 25,713.34 26,433.40 29,150.18
Volatility: 35 29 24
Volume: 2,035,660,032 1,963,869,952 2,113,475,712

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 12.1% below its 200-period moving average and is in an downward 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 bearish on .HSI and have had this outlook for the last 26 periods.

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