Hong Kong: HANG SENG INDEX (.HSI) lingering concerns over Beijing’s trade war

Hong Kong: HANG SENG INDEX (.HSI) lingering concerns over Beijing’s trade war

Hong Kong: HANG SENG INDEX (.HSI) lingering concerns over Beijing’s trade war 

Asia Pacific markets mostly rose on Monday as major Chinese indexes leaped more than 4 percent.

The moves followed Friday’s rally in Chinese stocks as authorities took steps to support the market after the release of weaker-than-expected GDP data.

One market observer, however, voiced skepticism over the recent rally in mainland Chinese stocks.

In Japan, the Nikkei 225 erased earlier losses to close 0.37 percent higher at 22,614.82 while the Topix index gained 0.15 percent to end the trading day at 1,695.31. South Korea’s Kospi gained 0.25 percent to close at 2,161.71. In Hong Kong, the Hang Seng index rose 2.22 percent in afternoon trade.

Overall, the bias in prices is: Downwards.

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

By the way, prices are vulnerable to a correction towards 27,221.62.

The projected upper bound is: 27,136.93.

The projected lower bound is: 25,081.13.

The projected closing price is: 26,109.03.

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 3 white candles and 7 black candles for a net of 4 black candles. During the past 50 bars, there have been 22 white candles and 28 black candles for a net of 6 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 71.6492. 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 45.03. 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 buy 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 -10. This is not a topping or bottoming area. The last signal was a buy 3 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 11 period(s) ago.

Rex Takasugi – TD Profile

HANG SENG INDEX closed up 591.750 at 26,153.150. Volume was 19% above average (neutral) and Bollinger Bands were 64% wider than normal.

Open High Low Close Volume___
25,668.33026,234.85925,668.33026,153.1502,291,558,912

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

Moving Averages: 10-period 50-period 200-period
Close: 25,771.28 27,149.93 29,565.30
Volatility: 31 24 23
Volume: 2,067,820,416 1,863,001,728 2,151,683,840

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 11.5% 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 11 periods. Our momentum oscillator has set a new 14-period high while the security price has not. This is a bullish divergence.

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