Hong Kong: HANG SENG INDEX (.HSI) leads Asia stocks lower

Hong Kong: HANG SENG INDEX (.HSI) leads Asia stocks lower

Hong Kong: HANG SENG INDEX (.HSI) leads Asia stocks lower

Asia Pacific stocks fell Tuesday, on the heels of a 2% drop at the start of the week for U.S. markets. Many indexes bounced off opening lows in early trading, with Japan’s Nikkei cutting its early losses by two-thirds as the trading day ramped up.

The Nikkei NIK, -0.59% closed down 0.6%, feeling added pressure from further gains overnight by the yen. The index is at 3-month lows and on track for its first 7-day losing streak in three years. New Zealand’s NZX 50 NZ50GR, -0.56% slipped 0.5% after its latest record high Monday, while South Korea’s benchmark rose 0.1%.

The Shanghai Composite 399106, -0.62% closed down 0.7%, but less than that seen in a number of neighboring markets. Meanwhile, the startup-heavy ChiNext fell 0.6%.

Hong Kong stocks saw the deepest losses, following Monday’s holiday and the start-of-week selling that’s been seen globally. The Hang Seng HSI, -1.50% closed down 1.5%. Macau casino stocks skidded some 5%, while Chinese developer Country Garden 2007, -2.35% and Tencent 0700, -2.98% logged losses.

Overall, the bias in prices is: Downwards.

Note: this chart shows extraordinary price action to the downside.

The projected upper bound is: 28,957.54.

The projected lower bound is: 27,260.50.

The projected closing price is: 28,109.02.

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.

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 12.3631. This is an oversold reading. However, a signal is not generated until the Oscillator crosses above 20 The last signal was a buy 9 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 33.19. 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 20 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 -171.This is an oversold reading. However, a signal isn’t generated until the indicator crosses above -100. The last signal was a buy 9 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 15 period(s) ago.

Rex Takasugi – TD Profile

HANG SENG INDEX closed down -428.221 at 28,122.020. Volume was 56% above average (neutral) and Bollinger Bands were 32% wider than normal.

Open High Low Close Volume___
27,951.11928,205.96127,925.61928,122.0202,964,186,880

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

Moving Averages: 10-period 50-period 200-period
Close: 29,217.70 29,292.66 27,520.52
Volatility: 26 19 22
Volume: 2,107,683,840 1,993,221,888 1,837,142,528

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 2.2% above its 200-period moving average and is in an downward trend. Volatility is extremely high when compared to the average volatility over the last 10 periods. There is a good possibility that volatility will decrease and prices will stabilize in the near term. 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 4 periods. 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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