Hong Kong: HANG SENG INDEX (.HSI) market downtrend has further room to run
Hong Kong stocks declined to a three-week low on Thursday after a surge in the US dollar overnight caused the city’s currency as well as offshore yuan to weaken, triggering pessimism over the economic outlook.
The Hong Kong’s dollar has weakened by 0.3 per cent against the US dollar since September 21, while the offshore yuan traded in Hong Kong fell past the key 6.9000 level before rebounding slightly thereafter.
It’s not looking good when the US dollar is strengthening and causing Asian currencies and their stocks to fall, Hong Kong’s stock market downtrend has further room to run.
Overall, the bias in prices is: Downwards.
The projected upper bound is: 27,521.55.
The projected lower bound is: 25,644.64.
The projected closing price is: 26,583.10.
A black body occurred (because prices closed lower than they opened).
During the past 10 bars, there have been 4 white candles and 6 black candles for a net of 2 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 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 10.6825. This is an oversold reading. However, a signal is not generated until the Oscillator crosses above 20 The last signal was a sell 4 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 39.15. 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 13 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 -124.This is an oversold reading. However, a signal isn’t generated until the indicator crosses above -100. The last signal was a sell 4 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 0 period(s) ago.
Rex Takasugi – TD Profile
HANG SENG INDEX closed down -467.391 at 26,623.869. Volume was 2% above average (neutral) and Bollinger Bands were 12% narrower than normal.
Open High Low Close Volume___
Short Term: Oversold
Intermediate Term: Bearish
Long Term: Bearish
Moving Averages: 10-period 50-period 200-period
Close: 27,450.06 27,703.86 29,749.25
Volatility: 25 22 22
Volume: 1,884,474,624 1,758,578,944 2,141,806,848
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 10.5% 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 0 periods.