Hong Kong: HANG SENG INDEX (.HSI) hit by a double whammy of policy disappointment in China

Hong Kong: HANG SENG INDEX (.HSI) hit by a double whammy of policy disappointment in China

Hong Kong: HANG SENG INDEX (.HSI) hit by a double whammy of policy disappointment in China

Hong Kong stocks slipped on Tuesday, hit by a double whammy of policy disappointment in China and depressing share prices across the region.

The Hang Seng index fell 1.1 percent to 25,814.25, while the Hang Seng China Enterprises index lost 1.2 percent.

The sub-index of the Hang Seng tracking energy shares dipped 2.3 percent, the IT sector lost 2.4 percent, while the more defensive financial sector edged down 0.7 percent and the property sector shed close to 1 percent.

Interest rate-sensitive Hong Kong stocks will face another test later this week, as the U.S. Federal Reserve may deliver another hike during its meeting on Tuesday and Wednesday. Local investors will also be watching for policy details at China’s annual Central Economic Work Conference, also expected to be held by the leadership this week.

Overall, the bias in prices is: Downwards

The projected upper bound is: 26,964.85.

The projected lower bound is: 24,648.12.

The projected closing price is: 25,806.48.

Candlesticks

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 23 white candles and 27 black candles for a net of 4 black candles.

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 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 38.3802. This is not an overbought or oversold reading. The last signal was a buy 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 44.86. 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 46 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 -78. This is not a topping or bottoming area. 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 sell 7 period(s) ago.

Rex Takasugi – TD Profile

HANG SENG INDEX closed down -273.730 at 25,814.250. Volume was 18% below average (neutral) and Bollinger Bands were 22% narrower than normal.

Open High Low Close Volume___
25,903.98026,152.88125,713.50025,814.2501,494,277,632

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

Moving Averages: 10-period 50-period 200-period
Close: 26,127.20 25,913.84 28,452.77
Volatility: 24 28 23
Volume: 1,630,651,136 1,797,070,848 1,903,578,368

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 9.3% 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 0 periods.

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