Hong Kong: HANG SENG INDEX (.HSI) Lunar New Year holidays

Hong Kong: HANG SENG INDEX (.HSI) Lunar New Year holidays

Hong Kong: HANG SENG INDEX (.HSI) Lunar New Year holidays

Shares in Hong Kong, Japan and Australia saw gains on Monday.

Hong Kong’s Hang Seng index, which closed earlier at 12:00 p.m. HK/SIN today with the eve of the Lunar New Year holidays, edged up 0.21 percent to close at 27,990.21.

Over in Japan, the Nikkei 225 advanced 0.46 percent to close at 20,883.77 while the Topix rose 1.07 percent to finish its trading day at 1,581.33. Shares of tech giant Sony closed down 8.07 percent after the company cut its sales and operating revenue forecast for the fiscal year.

The ASX 200 in Australia gained 0.48 percent to close at 5,891.20, with the sectors mostly higher.

The Royal Commission which looked into misconduct in Australia’s financial sector released its final report on Monday, with 76  recommendations for practices across banking, insurance, and financial advice.

“My message to the financial sector is that misconduct must end and the interests of consumers must now come first. From today the sector must change, and change forever,” said Australian Treasurer Josh Frydenberg.

Stock markets in China and South Korea were closed on Monday due to holidays.

Stocks stateside also gained as the U.S. government released strong jobs growth data that beat expectations. The U.S. economy added 304,000 jobs in January, according to data released by the Bureau of Labor Statistics. Economists polled by Refinitiv expect the U.S. economy to have added 170,000 jobs in January.

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 26,911.09.

The projected upper bound is: 28,927.48.

The projected lower bound is: 27,133.69.

The projected closing price is: 28,030.59.

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.

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).

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 78.8363. This is not an overbought or oversold reading. The last signal was a sell 0 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 71.03. This is where it usually tops. The RSI usually forms tops and bottoms before the underlying security. A buy or sell signal is generated when the RSI moves out of an overbought/oversold area. The last signal was a buy 77 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 112.This is an overbought reading. However, a signal isn’t generated until the indicator crosses below 100. The last signal was a sell 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 buy 19 period(s) ago.

Rex Takasugi – TD Profile

HANG SENG INDEX closed up 59.471 at 27,990.211. Volume was 53% below average (consolidating) and Bollinger Bands were 3% wider than normal.

Open High Low Close Volume___
27,985.42028,005.15027,847.43027,990.211 833,052,928

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

Moving Averages: 10-period 50-period 200-period
Close: 27,531.87 26,466.16 27,803.96
Volatility: 12 22 23
Volume: 1,711,452,288 1,662,029,056 1,836,049,408

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 0.7% above its 200-period moving average and is in an upward trend. Volatility is extremely low when compared to the average volatility over the last 10 periods. There is a good possibility that there will be an increase in volatility along with sharp price fluctuations in the near future. 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 15 periods. Our momentum oscillator is currently indicating that .HSI is currently in an overbought condition.

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