Hong Kong: HANG SENG INDEX (.HSI) Market Recovers After Opening Lower

Hong Kong: HANG SENG INDEX (.HSI) Market Recovers After Opening Lower

Hong Kong: HANG SENG INDEX (.HSI) Market Recovers After Opening Lower

Hong Kong stocks opened slightly lower on Monday amid fears the virus outbreak in mainland China will take its toll on the country’s economy, but quickly recovered their losses.

Shayne Heffernan, CEO and Founder of Heffx said the initial plunge wasn’t as bad as expected.

Mr. Heffernan warned, however, that if the virus outbreak takes a long time for China to get under control, it could cause recession and a domino effect on Asian economies.

Technical Indicators

Overall, the bias in prices is: Downwards.

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

The projected upper bound is: 27,288.90.

The projected lower bound is: 25,412.09.

The projected closing price is: 26,350.50.

Candlesticks

A white body occurred (because prices closed higher than they opened).
During the past 10 bars, there have been 5 white candles and 5 black candles. During the past 50 bars, there have been 25 white candles and 25 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 6.0629. This is an oversold reading. However, a signal is not generated until the Oscillator crosses above 20 The last signal was a buy 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 31.06. 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 sell 19 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 -139.This is an oversold reading. However, a signal isn’t generated until the indicator crosses above -100. The last signal was a buy 6 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 7 period(s) ago.

Rex Takasugi – TD Profile

HANG SENG INDEX closed up 44.350 at 26,356.980. Volume was 58% above average (neutral) and Bollinger Bands were 81% wider than normal.

Open     High      Low     Close     Volume___
26,189.60926,512.58026,145.59026,356.9802,421,482,752
Technical Outlook 
Short Term: Oversold
Intermediate Term: Bearish
Long Term: Bearish
Moving Averages: 10-period     50-period     200-period
Close: 27,631.68 27,541.52 27,438.69
Volatility: 27 22 20
Volume: 1,784,680,960 1,545,005,440 1,665,866,368

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 3.9% below its 200-period moving average and is in an downward trend. Volatility is extremely high when compared to the average volatility over the last 10 periods. There is a good possibility that volatility will decrease and prices will stabilize in the near term. 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 3 periods.

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