Hong Kong: HANG SENG INDEX (.HSI) PBOC said it will encourage financial market innovation to boost the economy
China and Hong Kong stocks rose on Wednesday, after Federal Reserve Chairman Jerome Powell reinforced the U.S. central bank’s recent shift towards a more “patient” approach on policy in the face of a slowing economy.
Mainland and Hong Kong stocks also got some support after the PBOC said it will encourage financial market innovation to boost the economy.
On the mainland, trust-related firms surged after reports that Beijing will lower the threshold for the investment in trust products, adding to signs that Beijing is loosening financial regulation to boost the real economy.
The CSI financials index has gained 24.8 percent so far this year, as Beijing continues to open up its financial markets and deepen reforms in the sector to help prop up the cooling economy.
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 27,479.57.
The projected upper bound is: 29,623.24.
The projected lower bound is: 28,011.07.
The projected closing price is: 28,817.15.
A black body occurred (because prices closed lower 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 31 white candles and 19 black candles for a net of 12 white candles.
Three black candles occurred in the last three days. Although these candles were not big enough to create three black crows, the steady downward pattern is bearish.
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 74.0696. 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 66.31. 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 1 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 104.This is an overbought reading. However, a signal isn’t generated until the indicator crosses below 100. The last signal was a sell 6 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 buy 3 period(s) ago.
Rex Takasugi – TD Profile
HANG SENG INDEX closed down -14.621 at 28,757.439. Volume was 39% above average (neutral) and Bollinger Bands were 23% narrower than normal.
Open High Low Close Volume___
Short Term: Overbought
Intermediate Term: Bullish
Long Term: Bullish
Moving Averages: 10-period 50-period 200-period
Close: 28,535.71 27,042.44 27,670.81
Volatility: 18 19 23
Volume: 2,115,729,152 1,740,271,360 1,847,638,784
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 3.9% above its 200-period moving average and is in an upward trend. Volatility is relatively normal as compared to the average volatility over the last 10 periods. 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 29 periods.