Hong Kong: HANG SENG INDEX (.HSI) Index outperforming world’s major indexes
Central banks have helped supercharge a rebound in Hong Kong stocks.
The Hang Seng Index jumped 5% last week, beating all other 93 major benchmarks tracked by Bloomberg. That’s its best weekly rally since early November. The Hang Seng Enterprises Index was a close second, adding 4.8%. The Hong Kong dollar strengthened towards the midpoint of its trading band with the greenback, a level it hasn’t breached since September.
The Hang Seng China Enterprises index ended nearly flat on Friday, but up 4.8% for the week – its largest gain in over seven months.
The sub-index of the Hang Seng tracking energy shares rose 1.5%, while the IT sector was flat, the financial sector ended 0.3% lower and the property sector dipped 0.6%.
Local interest rates climbed, with several tenors closing its spread with U.S. rates., lending strength to the local currency. The Hong Kong Dollar was last seen at 7.8088 per dollar, strongest since December 2018.
The local stock market locked in most of those weekly gains before Friday as the U.S. Federal Reserve said it could ease policy as soon as next month and with other central banks seen following suit.
Overall, the bias in prices is: Upwards.
The projected upper bound is: 29,296.77.
The projected lower bound is: 27,592.15.
The projected closing price is: 28,444.46.
Candlesticks
A black body occurred (because prices closed lower than they opened).
During the past 10 bars, there have been 5 white candles and 5 black candles. During the past 50 bars, there have been 24 white candles and 26 black candles for a net of 2 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 96.6636. This is an overbought reading. However, a signal is not generated until the Oscillator crosses below 80 The last signal was a sell 7 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 60.98. 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 10 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 157.This is an overbought reading. However, a signal isn’t generated until the indicator crosses below 100. The last signal was a sell 7 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 10 period(s) ago.
Rex Takasugi – TD Profile
HANG SENG INDEX closed down -76.719 at 28,473.711. Volume was 13% above average (neutral) and Bollinger Bands were 4% wider than normal.
Open High Low Close Volume___
28,581.51028,581.51028,359.25028,473.7112,239,069,440
Technical Outlook
Short Term: Overbought
Intermediate Term: Bullish
Long Term: Bullish
Moving Averages: 10-period 50-period 200-period
Close: 27,704.17 28,479.67 27,443.39
Volatility: 24 19 22
Volume: 1,953,332,352 2,013,122,176 1,879,606,656
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 3.8% above its 200-period moving average and is in an upward 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 bullish on .HSI and have had this outlook for the last 2 periods.
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