Hong Kong: HANG SENG INDEX (.HSI) investors lock in profit

Hong Kong: HANG SENG INDEX (.HSI) investors lock in profit

Hong Kong: HANG SENG INDEX (.HSI) investors lock in profit

Hong Kong stocks ended lower on Tuesday as investors locked in profit after a recent rally, while Alibaba’s shares rose to a small premium over New York in their debut at the financial hub.

At the close of trade, the Hang Seng index was down 79.12 points or 0.29% at 26,913.92 after gaining nearly 2% over the previous two sessions. The Hang Seng China Enterprises index closed 0.11% weaker at 10,617.37.

Hong Kong leader Carrie Lam acknowledged on Tuesday that the record turnout in local elections won by opposition, pro-democracy candidates highlighted dissatisfaction with her administration, while appealing for an end to violent protests. Analysts cited that smooth elections helped lift Asian markets on Monday.

Hong Kong-listed shares of Alibaba Group ended the day at HK$187.60, up 6.6% from the issue price of HK$176, and representing a small premium to pricing in New York.

The top gainers among H-shares were ENN Energy Holdings Ltd , which closed up 2.64%, followed by Want Want China Holdings Ltd, which ended 2.41% firmer and China Minsheng Banking Corp Ltd, up by 1.64%.

The three biggest H-shares percentage decliners were China Resources Beer Holdings Co Ltd, which closed down 2.82%, China Gas Holdings Ltd, which ended 1.74% weaker and China Railway Group Ltd, down by 1.65%.

About 2.42 billion Hang Seng index shares were traded, roughly 162.9% of the market’s 30-day moving average of 1.48 billion shares a day. The volume traded in the previous trading session was 1.50 billion.

Technical Indicators

Overall, the bias in prices is: Sideways.

The projected upper bound is: 27,662.38.

The projected lower bound is: 26,147.91.

The projected closing price is: 26,905.14.

Candlesticks

A black body occurred (because prices closed lower 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 23 white candles and 27 black candles for a net of 4 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 62.9105. This is not an overbought or oversold reading. The last signal was a buy 5 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 51.47. 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 12 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 28. This is not a topping or bottoming area. The last signal was a buy 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 sell 9 period(s) ago.

Rex Takasugi – TD Profile

HANG SENG INDEX closed down -79.119 at 26,913.920. Volume was 49% above average (neutral) and Bollinger Bands were 13% narrower than normal.

Open     High      Low     Close     Volume___
27,183.90027,227.86926,913.92026,913.9202,416,392,192
Technical Outlook 
Short Term: Neutral
Intermediate Term: Bearish
Long Term: Bearish
Moving Averages: 10-period     50-period     200-period
Close: 26,685.52 26,641.96 27,713.59
Volatility: 23 18 19
Volume: 1,561,729,152 1,544,178,048 1,755,890,688

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 2.9% 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 3 periods.

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