Hong Kong: HANG SENG INDEX (.HSI) Index ETF (2833.HK) 8.60% Higher Over past 13 Weeks

Hong Kong: HANG SENG INDEX (.HSI) Index ETF (2833.HK) 8.60% Higher Over past 13 Weeks

Hong Kong: HANG SENG INDEX (.HSI) 8.60% Higher Over past 13 Weeks

Shares of Hang Seng Index ETF (2833.HK) have been trending up over the past quarter, revealing solid bullish momentum for the equity, as they ran 8.60 over the past 13 weeks.  Looking more nearterm, the stock moved 1.25% for the week.  Looking slightly further out we note that the shares have moved 8.19% over the past 4-weeks, -3.73% over the past half year and -12.88% over the past full year.

Many new traders will jump right into the market without any concrete plan. They may be highly optimistic, but will soon realize that it takes more than optimism to secure profits in the stock market. Successful traders are usually good at having a backup plan for every trade. This may seem unnecessary to some, but when the harsh reality of a losing trade comes into the picture, it can be hard to rebound after taking a big hit. Rushing into trades to try and cover recent losses may also leave the trader on the outside looking in. Taking a rationalized approach may help the trader ride out the bumpy patches when they inevitably come.  

Technical analysts have been monitoring shares of Hang Seng Index ETF (2833.HK) as of late. The Relative Strength Index (RSI) is one of multiple popular technical indicators created by J. Welles Wilder. Wilder introduced RSI in his book “New Concepts in Technical Trading Systems” which was published in 1978. RSI measures the magnitude and velocity of directional price movements. The data is represented graphically by fluctuating between a value of 0 and 100. The indicator is computed by using the average losses and gains of a stock over a certain time period. RSI can be used to help spot overbought or oversold conditions. An RSI reading over 70 would be considered overbought, and a reading under 30 would indicate oversold conditions. A level of 50 would indicate neutral market momentum. Presently, the 14-day RSI is standing at 65.99, the 7-day is 71.20, and the 3-day is resting at 66.33.

Active traders have a wide range of technical indicators at their disposal for when completing technical stock analysis. Currently, the 14-day ATR for Hang Seng Index ETF (2833.HK) is spotted at 0.44. First developed by J. Welles Wilder, the ATR may assist traders in determining if there is heightened interest in a trend, or if extreme levels may be signaling a reversal. Simply put, the ATR determines the volatility of a security over a given period of time, or the tendency of the security to move one direction or another.

Overall, the bias in prices is: Upwards.

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

By the way, prices are vulnerable to a correction towards 26,976.63.

The projected upper bound is: 28,882.44.

The projected lower bound is: 27,087.28.

The projected closing price is: 27,984.86.

Candlesticks

A white body occurred (because prices closed higher than they opened).
During the past 10 bars, there have been 8 white candles and 2 black candles for a net of 6 white candles. During the past 50 bars, there have been 29 white candles and 21 black candles for a net of 8 white 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 72.0972. This is not an overbought or oversold reading. The last signal was a sell 1 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 69.75. This is not a topping or bottoming area. However, the RSI just crossed below 70 from a topping formation. This is a bearish sign. A buy or sell signal is generated when the RSI moves out of an overbought/oversold area. The last signal was a sell 0 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 80. This is not a topping or bottoming area. The last signal was a sell 0 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 20 period(s) ago.

Rex Takasugi – TD Profile

HANG SENG INDEX closed down -43.891 at 27,946.320. Volume was 11% below average (neutral) and Bollinger Bands were 5% narrower than normal.

Open High Low Close Volume___
27,708.13128,008.82027,534.19927,946.3201,574,917,120

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

Moving Averages: 10-period 50-period 200-period
Close: 27,625.96 26,504.70 27,793.38
Volatility: 11 22 23
Volume: 1,706,217,216 1,672,682,368 1,834,043,136

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 0.6% above its 200-period moving average and is in an upward trend. Volatility is extremely low when compared to the average volatility over the last 10 periods. There is a good possibility that there will be an increase in volatility along with sharp price fluctuations in the near future. Our volume indicators reflect moderate flows of volume into .HSI (mildly bullish). Our trend forecasting oscillators are currently bullish on .HSI and have had this outlook for the last 16 periods.

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