Hong Kong: HANG SENG INDEX (.HSI) markets tumble as fears over virus outbreak spread
Shares tumbled in Asia on Thursday as concern over the impact of the virus outbreak in China deepened.
Taiwan’s benchmark dived 5.3% as its market reopened after the Lunar New Year. Japan’s Nikkei 225 index sank 1.9% to 22,935.20, while Hong Kong’s Hang Seng index skidded 1.7% to 26,693.06. In Australia, the S&P ASX/200 declined 0.4% to 7,001.60. South Korea’s Kospi lost 1.4% to 2,154.05.
Shares also retreated in India and Southeast Asia. Mainland Chinese markets remained closed for the Lunar New Year holiday.
“With equity markets pumped to juicy levels by the relentless flow of cheap central bank money around the world, unexpected Wuhan-like events leave them acutely vulnerable to potentially aggressive corrections,” Jeffrey Halley of Oanda said in a commentary.
The death toll from the virus rose to 170, with 7,711 people confirmed infected, as foreign evacuees from the worst-hit region in central China began returning home under close observation. World health officials expressed “great concern” that the disease is starting to spread between people outside of China.
Overall, the bias in prices is: Downwards.
The projected upper bound is: 27,400.23.
The projected lower bound is: 25,503.05.
The projected closing price is: 26,451.64.
A big black candle occurred. This is bearish, as prices closed significantly lower than they opened. If the candle appears when prices are “high,” it may be the first sign of a top. If it occurs when prices are confronting an overhead resistance area (e.g., a moving average, trendline, or price resistance level), the long black candle adds credibility to the resistance. Similarly, if the candle appears as prices break below a support area, the long black candle confirms the failure of the support area.
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 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 8.5608. This is an oversold reading. However, a signal is not generated until the Oscillator crosses above 20 The last signal was a buy 2 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 31.29. 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 17 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 -202.This is an oversold reading. However, a signal isn’t generated until the indicator crosses above -100. The last signal was a buy 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 5 period(s) ago.
Rex Takasugi – TD Profile
HANG SENG INDEX closed down -711.500 at 26,449.131. Volume was 47% above average (neutral) and Bollinger Bands were 33% wider 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: 28,130.38 27,548.29 27,476.72
Volatility: 28 22 20
Volume: 1,641,211,904 1,511,202,816 1,664,302,208
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 3.7% 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 1 periods.
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