Hong Kong: HANG SENG INDEX (.HSI) investors watching the health of the Chinese economy

Hong Kong: HANG SENG INDEX (.HSI) investors watching the health of the Chinese economy

Hong Kong: HANG SENG INDEX (.HSI) investors watching the health of the Chinese economy

Most Asian stock markets closed higher on Wednesday, following the release of better-than-expected economic numbers from China.

Mainland Chinese shares were higher on the day. The Shanghai composite rose 0.29 percent to approximately 3,263.12 and the Shenzhen component added around 0.55 percent to about 10,344.43. The Shenzhen composite rose 0.721 percent to close at around 1,772.71.

Hong Kong’s Hang Seng index was largely flat, as of its final hour of trading.

China said Wednesday its economy grew 6.4 percent in the first quarter of 2019, beating analysts’ expectations. A Reuters poll predicted the country’s gross domestic product would grow 6.3 percent year-on-year in the first three months of the year. China grew by 6.4 percent year-on-year in the fourth quarter of last year, and 6.8 percent in the first quarter of 2018.

Investors have been watching the health of the Chinese economy — the world’s second largest — amid Beijing’s ongoing trade dispute with Washington. Official GDP figures are widely followed, but many experts have long expressed skepticism about the veracity of China’s reports.

China also released housing price data on Tuesday, reporting that average new home prices rose faster in March compared to a month earlier, according to Reuters’ calculation of data released by the National Bureau of Statistics.

“The housing data was interpreted as yet another signal that the China’s policy stimuli are beginning to show a positive effect on the economy,” Rodrigo Catril, senior foreign exchange strategist at National Australia Bank, wrote in a morning note.

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 28,692.88.

The projected upper bound is: 30,878.11.

The projected lower bound is: 29,458.54.

The projected closing price is: 30,168.32.

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 29 white candles and 21 black candles for a net of 8 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).

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 57.3022. This is not an overbought or oversold reading. The last signal was a sell 4 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 65.04. 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 5 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 71. This is not a topping or bottoming area. The last signal was a sell 5 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 0 period(s) ago.

Rex Takasugi – TD Profile

HANG SENG INDEX closed down -5.189 at 30,124.680. Volume was 14% above average (neutral) and Bollinger Bands were 24% wider than normal.

Open High Low Close Volume___
30,160.68930,178.58030,004.97130,124.6802,098,089,984

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

Moving Averages: 10-period 50-period 200-period
Close: 30,009.14 28,976.97 27,448.30
Volatility: 12 16 22
Volume: 2,073,004,672 1,954,702,976 1,843,097,088

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 9.8% above its 200-period moving average and is in an upward trend. Volatility is low as compared to the average volatility over the last 10 periods. 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 10 periods.

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