Hong Kong: HANG SENG INDEX (.HSI) investors bet on the U.S. Federal Reserve to take a pause in hiking interest rates

Hong Kong: HANG SENG INDEX (.HSI) investors bet on the U.S. Federal Reserve to take a pause in hiking interest rates

Hong Kong: HANG SENG INDEX (.HSI) investors bet on the U.S. Federal Reserve to take a pause in hiking interest rates

Shares in Hong Kong closed higher on Wednesday as investors bet on the U.S. Federal Reserve to take a pause in hiking interest rates and China to step up efforts to boost decades-low growth.

At the close of trade, the Hang Seng index was up 0.4 percent at 27,642.85 points, while the Hang Seng China Enterprises index rose 0.3 percent.

The sub-index of the Hang Seng tracking energy shares ended 1 percent firmer, while the IT sector closed 0.5 percent higher, the financial sector ended 0.3 percent higher and the property sector rose 1.1 percent.

Economic indicators appear to suggest that central bank could hold off from a hike this week as signals of a global slowdown mount.

To spur growth, China on Tuesday unveiled a flurry of measures aimed at boosting sales of items ranging from cars and appliances to information services.

Shares of China BlueChemical Ltd jumped as much as 11.2 pct, after the company said it expects strong growth in 2018 earnings, while Evergrande Health Industry Group Ltd rose as much as 7 pct after announcing its plan to buy a Swedish supercar company.

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 26,717.71.

The projected upper bound is: 28,596.68.

The projected lower bound is: 26,747.39.

The projected closing price is: 27,672.04.

Candlesticks

A white body occurred (because prices closed higher than they opened).
During the past 10 bars, there have been 7 white candles and 3 black candles for a net of 4 white candles. During the past 50 bars, there have been 28 white candles and 22 black candles for a net of 6 white 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).

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 77.4543. This is not an overbought or oversold reading. The last signal was a sell 0 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 67.28. 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 74 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 115.This is an overbought reading. However, a signal isn’t generated until the indicator crosses below 100. The last signal was a sell 6 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 16 period(s) ago.

Rex Takasugi – TD Profile

HANG SENG INDEX closed up 111.170 at 27,642.850. Volume was 6% above average (neutral) and Bollinger Bands were 24% wider than normal.

Open High Low Close Volume___
27,571.41027,642.85027,369.75027,642.8501,878,241,920

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

Moving Averages: 10-period 50-period 200-period
Close: 27,249.83 26,352.56 27,844.42
Volatility: 13 22 23
Volume: 1,761,987,968 1,645,950,848 1,837,521,024

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 0.7% below 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 12 periods.

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