Hong Kong: HANG SENG INDEX (.HSI) investor sentiment soured over mounting worries about world growth

Hong Kong: HANG SENG INDEX (.HSI) investor sentiment soured over mounting worries about world growth

Hong Kong: HANG SENG INDEX (.HSI) investor sentiment soured over mounting worries about world growth

Hong Kong shares fell on Wednesday, tracking losses around the region as investor sentiment soured over mounting worries about world growth, with trade tensions between the United States and China showing no signs of easing.

At the close of trade, the Hang Seng index was down 155.10 points, or 0.57%, at 27,235.71. The Hang Seng China Enterprises index fell 0.25% to 10,390.45.

The sub-index of the Hang Seng tracking energy shares dipped 0.6%, while the IT sector dipped 0.9%, the financial sector ended 0.53% lower and the property sector dipped 0.63%.

Shares of China Rare Earth Holdings Ltd jumped 23.53% after reports that Beijing is mulling restricting exports of the materials to the United States.

Major Chinese newspapers warned the United States on Wednesday that China is ready to use rare earths to strike back in their bitter trade war, with the ruling Communist Party’s People’s Daily newspaper saying in an extremely strongly worded commentary, “don’t say we didn’t warn you”.

The top gainer on the Hang Seng was Hong Kong and China Gas Co Ltd, which gained 1.15%, while the biggest loser was Sands China Ltd, which fell 2.84%.

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 28,285.54.

The projected upper bound is: 28,016.37.

The projected lower bound is: 26,392.18.

The projected closing price is: 27,204.28.

Candlesticks

A white body occurred (because prices closed higher 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 27 white candles and 23 black candles for a net of 4 white candles.

A long upper shadow occurred. This is typically a bearish signal (particularly when it occurs near a high price level, at resistance level, or when the security is overbought).

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 white candles occurred in the last three days. Although these candles were not big enough to create three white soldiers, the steady upward pattern is 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 30.6812. This is not an overbought or oversold reading. The last signal was a buy 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 29.10. 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 1 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 -93. 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 26 period(s) ago.

Rex Takasugi – TD Profile

HANG SENG INDEX closed down -155.100 at 27,235.711. Volume was 18% above average (neutral) and Bollinger Bands were 84% wider than normal.

Open High Low Close Volume___
27,226.94927,429.36927,178.71127,235.7112,306,050,560

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

Moving Averages: 10-period 50-period 200-period
Close: 27,590.80 29,048.18 27,476.24
Volatility: 12 18 22
Volume: 2,157,866,752 2,015,796,480 1,860,203,648

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 0.9% 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 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 15 periods. Our momentum oscillator is currently indicating that .HSI is currently in an oversold condition. The security price has set a new 14-period low while our momentum oscillator has not. This is a bullish divergence.

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