Hong Kong: HANG SENG INDEX (.HSI) investor sentiment picked up slightly

Hong Kong: HANG SENG INDEX (.HSI) investor sentiment picked up slightly

Hong Kong: HANG SENG INDEX (.HSI) investor sentiment picked up slightly

Stocks in Asia gained on Monday as investor sentiment picked up slightly amid a new round of trade negotiations between the United States and China in Beijing.

Japan’s Nikkei 225 bounced 2.44 percent to close at 20,038.97 while the Topix jumped 2.81 percent to finish its trading day at 1,512.53. Shares of automaker Toyota gained 3.15 percent.

South Korea’s Kospi gained 1.34 percent to close at 2,037.10 as shares of steelmaker Dongbu Steel skyrocketed almost 30 percent after the company announced plans to issue new shares to draw new investment. Samsung shares rose 3.47 percent.

Australia’s benchmark ASX 200 was up 1.14 percent to close at 5,683.20 as most sectors saw gains. The materials subindex advanced 2.22 percent as shares of major miners rose; Rio Tinto was up 2.69 percent, Fortescue Metals Group gained 3.26 percent and BHP Billiton jumped 3.03 percent.

Hong Kong’s Hang Seng index also saw gains of around 0.6 percent in late afternoon trade. Shares of China Mobile rose 1.11 percent following Nomura’s upgrade of its rating to “buy” from “neutral,” citing the company’s strong position for the “imminent” next generation 5G wireless standard.

Overall, the bias in prices is: Downwards.

By the way, prices are vulnerable to a correction towards 26,385.98.

The projected upper bound is: 26,909.45.

The projected lower bound is: 24,785.38.

The projected closing price is: 25,847.42.

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 26 white candles and 24 black candles for a net of 2 white candles.

A rising window occurred (where the top of the previous shadow is below the bottom of the current shadow). This usually implies a continuation of a bullish trend. There have been 8 rising windows in the last 50 candles–this makes the current rising window even more bullish.

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 57.5405. This is not an overbought or oversold reading. The last signal was a buy 8 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 49.99. 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 57 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 59. This is not a topping or bottoming area. The last signal was a buy 1 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 18 period(s) ago.

Rex Takasugi – TD Profile

HANG SENG INDEX closed up 209.670 at 25,835.699. Volume was 17% below average (neutral) and Bollinger Bands were 37% narrower than normal.

Open High Low Close Volume___
26,015.84026,043.64125,753.46125,835.6991,491,845,632

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

Moving Averages: 10-period 50-period 200-period
Close: 25,551.36 25,899.29 28,162.93
Volatility: 25 26 23
Volume: 1,484,021,888 1,680,125,696 1,865,780,224

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 gapped up today (bullish) on normal volume. Possibility of a Runaway Gap which usually signifies a continuation of the trend. Four types of price gaps exist – Common, Breakaway, Runaway, and Exhaustion. Gaps acts as support/resistance.
HANG SENG INDEX is currently 8.3% 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 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 11 periods. Our momentum oscillator has set a new 14-period high while the security price has not. This is a bullish divergence.

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