Hong Kong: HANG SENG INDEX (.HSI) little changed even amid declines elsewhere in the region

Hong Kong: HANG SENG INDEX (.HSI) little changed even amid declines elsewhere in the region

Hong Kong: HANG SENG INDEX (.HSI) little changed even amid declines elsewhere in the region

After Wednesday’s holiday and strong regional gains, Hong Kong stocks were little changed even amid declines elsewhere in the region. The Hang Seng Index HSI, -0.03% was about flat.

The energy sector declined following Wednesday’s crude-price slide. Oil giant CNOOC 0883, -2.01% was down 2% and Sinopec 0386, -4.27% was off 4.3%. But developer New World 0017, +1.01% rose 1%.

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 27,279.58.

The projected upper bound is: 26,419.29.

The projected lower bound is: 24,395.21.

The projected closing price is: 25,407.25.

Candlesticks

A black body occurred (because prices closed lower than they opened).
During the past 10 bars, there have been 2 white candles and 8 black candles for a net of 6 black candles. During the past 50 bars, there have been 21 white candles and 29 black candles for a net of 8 black candles.

Three black candles occurred in the last three days. Although these candles were not big enough to create three black crows, the steady downward pattern is bearish.

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 28.5050. This is not an overbought or oversold reading. The last signal was a buy 3 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 33.34. 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 3 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 -89. This is not a topping or bottoming area. The last signal was a buy 1 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 -7.709 at 25,454.551. Volume was 5% below average (neutral) and Bollinger Bands were 65% wider than normal.

Open High Low Close Volume___
25,674.66025,674.66025,261.72125,454.5511,819,304,192

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

Moving Averages: 10-period 50-period 200-period
Close: 25,919.47 27,247.80 29,602.60
Volatility: 27 24 23
Volume: 1,998,407,424 1,840,420,736 2,145,226,752

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 14.0% 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 9 periods.

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