Hong Kong: HANG SENG INDEX (.HSI) investors fled equities on growing fears about a U.S. recession

Hong Kong: HANG SENG INDEX (.HSI) investors fled equities on growing fears about a U.S. recession

Hong Kong: HANG SENG INDEX (.HSI) investors fled equities on growing fears about a U.S. recession

Hong Kong stocks posted their worst day in nearly three months on Monday, tracking a global selloff, as investors fled equities on growing fears about a U.S. recession, and on caution ahead of fresh U.S.-China trade talks.

The Hang Seng index fell 2 percent to 28,523.35 points, its biggest single-day drop since Jan. 2, while the China Enterprises Index lost 2.5 percent to 11,232.07 points.

On Friday, all three major U.S. stock indexes marked their biggest one-day percentage losses since Jan. 3. The Dow slid 1.8 percent, the S&P 500 was off 1.9 percent and the Nasdaq dropped 2.5 percent.

There was also caution ahead of the latest round of trade talks.

Overall, the bias in prices is: Upwards.

The projected upper bound is: 29,303.12.

The projected lower bound is: 27,826.03.

The projected closing price is: 28,564.57.

Candlesticks

A white body occurred (because prices closed higher 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 31 white candles and 19 black candles for a net of 12 white candles.

A falling window occurred (where the bottom of the previous shadow is above the top of the current shadow). This usually implies a continuation of a bearish trend. There have been 3 falling windows in the last 50 candles–this makes the current falling window even more bearish. The two candles preceding the falling window were black, which makes this pattern even more bearish.

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).

An on-neck line occurred. This is a bearish pattern where prices should move lower when the white candlestick’s (i.e., the most recent) low is penetrated.

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.

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 24.5528. This is not an overbought or oversold reading. The last signal was a sell 2 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 46.95. 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 sell 19 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 -92. This is not a topping or bottoming area. The last signal was a sell 2 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 1 period(s) ago.

Rex Takasugi – TD Profile

HANG SENG INDEX closed down -590.010 at 28,523.350. Volume was 23% above average (neutral) and Bollinger Bands were 35% narrower than normal.

Open High Low Close Volume___
28,501.36928,702.24028,463.10928,523.3502,155,795,712

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

Moving Averages: 10-period 50-period 200-period
Close: 29,049.65 28,162.18 27,501.83
Volatility: 19 17 23
Volume: 1,773,905,024 1,880,832,512 1,846,644,352

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 down today (bearish) 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 3.7% above its 200-period moving average and is in an upward trend. Volatility is 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 47 periods. our momentum oscillator has set a new 14-period low while the security price has not. This is a bearish divergence.

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