Hong Kong: HANG SENG INDEX (.HSI) market closes higher, as US-China trade war fears weigh on mainland Chinese stocks
The Hong Kong market closed higher on Monday, boosted by heavyweights in telecom and energy, while fears about the US delisting Chinese companies weighed on sentiment in mainland China, where the Shanghai Composite fell to a monthly low, wiping out all its September gains.
The Shanghai Composite closed 0.92 per cent down at 2,905.19 on Monday, while the Shenzhen Component Index closed 1.1 per cent lower at 9,446.2. The technology-heavy ChiNext Index closed 1.2 per cent lower at 1,627.55.
Stocks fell broadly across Star Market, the new board launched in Shanghai for fundraising by technology companies. Espressif Systems Shanghai, a semiconductor manufacturer, tumbled by 15 per cent to 150.5 yuan.
But all three debuting stocks on the board skyrocketed – Beijing Hotgen Biotech rose 140.6 per cent, Hillstone Networks recorded a 112.7 per cent increase, while Shenzhen Transsion Holdings rose 64.4 per cent.
In Hong Kong, the Hang Seng Index closed 0.33 per cent higher at 26039.57. Budweiser Brewing, which debuted on its main board, closed 4.4 per cent higher at HK$28.2. Malaysian civil and structural works contractor TBK & Sons Holdings rose on its debut, by 60 per cent to HK$0.8. But local financial services provider LFG Investment Holdings slumped 36 per cent from its IPO price to close at HK$1.07.
Overall, the bias in prices is: Downwards.
The projected upper bound is: 26,909.80.
The projected lower bound is: 25,183.57.
The projected closing price is: 26,046.69.
A white body occurred (because prices closed higher than they opened).
During the past 10 bars, there have been 1 white candles and 9 black candles for a net of 8 black candles. During the past 50 bars, there have been 18 white candles and 32 black candles for a net of 14 black candles.
An engulfing bullish line occurred (where a white candle’s real body completely contains the previous black candle’s real body). The engulfing bullish pattern is bullish during a downtrend (which appears to be the case with HANG SENG INDEX). It then signifies that the momentum may be shifting from the bears to the bulls.
If the engulfing bullish pattern occurs during an uptrend, it may be a last engulfing top which indicates a top. The test to see if this is the case is if the next candle closes below the top of the current (white) candle’s real body.
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.
One method of interpreting the Stochastic Oscillator is looking for overbought areas (above 80) and oversold areas (below 20). The Stochastic Oscillator is 28.7349. This is not an overbought or oversold reading. The last signal was a buy 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 43.26. 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 30 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 0 period(s) ago.
The Moving Average Convergence/Divergence indicator (MACD) gives signals when it crosses its 9 period signal line. The last signal was a sell 5 period(s) ago.
Rex Takasugi – TD Profile
HANG SENG INDEX closed up 137.459 at 26,092.270. Volume was 20% below average (neutral) and Bollinger Bands were 21% narrower than normal.
Open High Low Close Volume___
Short Term: Neutral
Intermediate Term: Bullish
Long Term: Bearish
Moving Averages: 10-period 50-period 200-period
Close: 26,298.67 26,513.79 27,652.45
Volatility: 12 21 19
Volume: 1,569,265,536 1,716,637,184 1,790,487,936
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.
HANG SENG INDEX is currently 5.6% below 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 15 periods.