Hong Kong: HANG SENG INDEX (.HSI) likely to break 28,000 by end of year

Hong Kong: HANG SENG INDEX (.HSI) likely to break 28,000 by end of year

Hong Kong: HANG SENG INDEX (.HSI) likely to break 28,000 by end of year

The Hang Seng Index closed 1.2 per cent higher, at 27,843.71. 

Investor sentiment was buoyed by the partial trade deal. In addition, stocks got a boost from “window dressing” in which fund managers snap up stocks with good performances to add to their portfolios to impress investors, analysts said.

Tencent (700 HK) was the top gainer on the Hang Seng, rising 3.2 per cent to HK$371.2, marking its highest level since July 30 when it closed at HK$373.2. 

Meanwhile, health-care stocks did well: CSPC Pharmaceutical (1093 HK) jumped 4.2 per cent to HK$18.36, and Sino Biopharmaceuticals (1177 HK) rose 3.7 per cent to HK$10.68.  

Selective stocks with businesses in Macau gained, as investors await more announcements from president Xi Jinping visit on Friday. He is expected to confirm recent media reports about Beijing plans for a renminbi stock exchange as part of its move to augment Macau’s offshore renminbi business.

Casino operator Sands China (1928 HK) gained 1.8 per cent to  HK$40.30. Outside the blue chips, Shun Tak Holdings (242 HK), which operates ferry services between Hong Kong and Macau, continued its gains into a fifth day and closed 3.1 per cent higher, to HK$4.06, marking its highest level since August 2015. Pansy Ho Chiu-king, the eldest daughter of “King of Gambling” Stanley Ho Hung-sun, is the managing director of Shun Tak Holdings.

Technical Indicators

Overall, the bias in prices is: Upwards.

By the way, prices are vulnerable to a correction towards 26,860.12.

The projected upper bound is: 28,720.08.

The projected lower bound is: 27,045.36.

The projected closing price is: 27,882.72.

Candlesticks

A big white candle occurred. This is generally considered bullish, as prices closed significantly higher than they opened. If the candle appears when prices are “low,” it may be the first sign of a bottom. If it occurs when prices are rebounding off of a support area (e.g., a moving average, trendline, or retracement level), the long white candle adds credibility to the support. Similarly, if the candle appears during a breakout above a resistance area, the long white candle adds credibility to the breakout.
During the past 10 bars, there have been 6 white candles and 4 black candles for a net of 2 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 93.8704. This is an overbought reading. However, a signal is not generated until the Oscillator crosses below 80 The last signal was a buy 8 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 65.47. 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 27 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 155.This is an overbought reading. However, a signal isn’t generated until the indicator crosses below 100. The last signal was a buy 7 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 3 period(s) ago.

Rex Takasugi – TD Profile

HANG SENG INDEX closed up 335.621 at 27,843.711. Volume was 20% above average (neutral) and Bollinger Bands were 9% narrower than normal.

Open     High      Low     Close     Volume___
27,630.68927,894.72127,563.43927,843.7111,926,224,512
Technical Outlook 
Short Term: Overbought
Intermediate Term: Bullish
Long Term: Bullish
Moving Averages: 10-period     50-period     200-period
Close: 26,838.85 26,790.76 27,590.15
Volatility: 20 20 19
Volume: 1,505,382,272 1,528,038,400 1,724,962,304

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 0.9% above its 200-period moving average and is in an upward 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 bullish on .HSI and have had this outlook for the last 1 periods.

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