Hong Kong: HANG SENG INDEX (.HSI) in bear’s grasp, if China ETF any indication

Hong Kong: HANG SENG INDEX (.HSI) in bear’s grasp, if China ETF any indication

Hong Kong: HANG SENG INDEX (.HSI) in bear’s grasp, if China ETF any indication

Chinese stocks are in a bear market if the iShares China Large-Cap ETF FXI.P is any indication

The ETF, which was down 2.2 pct at $43.21 Mon afternoon, fell to as low as $42.87, following an escalating trade dispute between the U.S. and China; FXI has lost more than 20 pct from its late-Jan high of $54

China blue-chip CSI300 index .CSI300, which fell 1.3 pct on Mon, is already down about 19 pct from its Jan high and could be approaching the 20 pct threshold following the drop in the FXI

Both include such cos as China Construction Bank 601939.SS and China Life Insurance 601628.SS

The U.S. Treasury Depart is drafting curbs that would block firms with at least 25 pct Chinese ownership from buying U.S. cos with “industrially significant technology,” a government official briefed on the matter said on Sun (Full Story)

U.S.-listed names of Chinese cos also fell sharply on Mon, including Alibaba BABA.N, down 5.2 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 30,433.67.

The projected upper bound is: 29,889.77.

The projected lower bound is: 27,955.56.

The projected closing price is: 28,922.66.

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 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 8.0628. This is an oversold reading. However, a signal is not generated until the Oscillator crosses above 20 The last signal was a sell 10 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 31.74. 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 86 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 -124.This is an oversold reading. However, a signal isn’t generated until the indicator crosses above -100. The last signal was a sell 10 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 6 period(s) ago.

Rex Takasugi – TD Profile

HANG SENG INDEX closed down -377.309 at 28,961.391. Volume was 13% above average (neutral) and Bollinger Bands were 23% wider than normal.

Open High Low Close Volume___
29,326.11929,403.35928,895.40028,961.3912,371,931,648

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

Moving Averages: 10-period 50-period 200-period
Close: 30,040.20 30,542.66 29,951.96
Volatility: 19 20 21
Volume: 2,172,985,088 1,926,149,376 2,145,726,592

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 3.3% below its 200-period moving average and is in an downward trend. Volatility is 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 4 periods.

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