Hong Kong: HANG SENG INDEX (.HSI) increasing concerns over the state of global trade

Hong Kong: HANG SENG INDEX (.HSI) increasing concerns over the state of global trade

Hong Kong: HANG SENG INDEX (.HSI) increasing concerns over the state of global trade

Stocks in Asia were mixed on Monday amid increasing concerns over the state of global trade.

Mainland Chinese shares closed lower, with the Shanghai composite slipping 0.3% to 2,890.08 and the Shenzhen component declining 0.74% to 8,856.99. The Shenzhen composite also shed 1.043% to 1,515.89.

Over in Hong Kong, the Hang Seng index declined 0.15%, as of its final hour of trading. Hong Kong-listed shares of HSBC dropped 1.01%, while life insurer AIA slipped 1.56%.

Shayne Heffernan, CEO and Founder of Heffx said “It is time to be thinking about … where can you earn a secure yield. It’s playing defense in equities rather than being aggressive.”

Rex Takasugi – TD Profile
Analysis of
S&P/ASX 200 (.AXJO)
as of 3/06/2019

S&P/ASX 200 closed down -76.400 at 6,320.500. Volume was 1% below average (neutral) and Bollinger Bands were 38% wider than normal.

Open High Low Close Volume___
6,396.9006,396.9006,320.5006,320.500 628,719,232

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

Moving Averages: 10-period 50-period 200-period
Close: 6,444.48 6,302.90 6,042.92
Volatility: 10 12 14
Volume: 640,526,208 594,669,056 619,438,272

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.

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 28,101.83.

The projected upper bound is: 27,632.95.

The projected lower bound is: 26,054.16.

The projected closing price is: 26,843.56.

Candlesticks

A black body occurred (because prices closed lower than they opened).
During the past 10 bars, there have been 3 white candles and 7 black candles for a net of 4 black candles. During the past 50 bars, there have been 25 white candles and 25 black candles.

A long lower shadow occurred. This is typically a bullish signal (particularly when it occurs near a low price level, at a support level, or when the security is oversold).

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 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 16.2639. This is an oversold reading. However, a signal is not generated until the Oscillator crosses above 20 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 25.62. 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 4 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 -116.This is an oversold reading. However, a signal isn’t generated until the indicator crosses above -100. 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 29 period(s) ago.

Rex Takasugi – TD Profile

HANG SENG INDEX closed down -7.230 at 26,893.859. Volume was 10% below average (neutral) and Bollinger Bands were 44% wider than normal.

Open High Low Close Volume___
26,909.71126,968.10026,735.48026,893.8591,769,321,216

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

Moving Averages: 10-period 50-period 200-period
Close: 27,280.87 28,920.92 27,462.07
Volatility: 11 17 22
Volume: 2,041,857,536 2,019,448,576 1,864,438,400

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 2.1% 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 moderate flows of volume out of .HSI (mildly bearish). Our trend forecasting oscillators are currently bearish on .HSI and have had this outlook for the last 18 periods. Our momentum oscillator is currently indicating that .HSI is currently in an oversold condition.

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HEFFX has become one of Asia’s leading financial services companies with interests in Publishing, Private Equity, Capital Markets, Mining, Retail, Transport and Agriculture that span every continent of the world. Our clearing partners have unprecedented experience in Equities, Options, Forex and Commodities brokering, banking, physical metals dealing, floor brokering and trading.

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