Hong Kong: HANG SENG INDEX (.HSI) post gains of more than 1%

Hong Kong: HANG SENG INDEX (.HSI) post gains of more than 1%

Hong Kong: HANG SENG INDEX (.HSI) post gains of more than 1%

Asian stocks rallied Tuesday, following strong gains on Wall Street that snapped five straight days of losses. Investors may have also been buoyed by increased optimism over a Brexit vote in the British Parliament later in the day after Prime Minister Theresa May won last-minute concessions from the EU on the so-called Irish backstop.

Japan’s Nikkei NIK, +1.79% gained 1.9% and Hong Kong’s Hang Seng index HSI, +1.46% rose 1.4%. On the Chinese mainland, the Shanghai Composite SHCOMP, +1.10% advanced 1.5% while the smaller-cap Shenzhen Composite 399106, +1.68% rose 1.7%. South Korea’s Kospi SEU, +0.89% nudged up 0.9% and Australia’s S&P/ASX 200 XJO, -0.09% inched up 0.3%. Indexes rose in Taiwan Y9999, +0.91% and Singapore STI, -0.47% , but Indonesia JAKIDX, -0.26% was slightly in the red.

Among individual stocks, Hitachi 6501, +4.08% surged in Tokyo trading, as did Nintendo 7974, +3.43% , Sony 6758, +2.55% and Fast Retailing 9983, +2.86% . Telecom China Mobile 0941, +1.99% and insurer AIA 1299, +1.76% gained in Hong Kong, while Samsung 005930, +2.29% rose in Korea. Energy stocks such as Santos STO, +1.91% and Beach Energy BPT, +3.00% advanced again in Australia.

Overall, the bias in prices is: Upwards.

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

The projected upper bound is: 29,795.20.

The projected lower bound is: 28,177.32.

The projected closing price is: 28,986.26.

Candlesticks

A white body occurred (because prices closed higher than they opened).
During the past 10 bars, there have been 6 white candles and 4 black candles for a net of 2 white candles. During the past 50 bars, there have been 32 white candles and 18 black candles for a net of 14 white candles.

A rising window occurred (where the top of the previous shadow is below the bottom of the current shadow). This usually implies a continuation of a bullish trend. There have been 6 rising windows in the last 50 candles–this makes the current rising window even more bullish.

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 36.3823. 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 60.21. 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 10 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 43. This is not a topping or bottoming area. The last signal was a buy 0 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 8 period(s) ago.

Rex Takasugi – TD Profile

HANG SENG INDEX closed up 417.568 at 28,920.869. Volume was 8% above average (neutral) and Bollinger Bands were 40% narrower than normal.

Open High Low Close Volume___
28,760.27028,941.09028,734.09028,920.8691,918,047,232

Technical Outlook
Short Term: Neutral
Intermediate Term: Bullish
Long Term: Bullish

Moving Averages: 10-period 50-period 200-period
Close: 28,759.36 27,547.13 27,571.67
Volatility: 18 19 23
Volume: 2,154,457,344 1,851,563,648 1,870,536,448

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 gapped up today (bullish) on normal volume. Possibility of a Runaway Gap which usually signifies a continuation of the trend. Four types of price gaps exist – Common, Breakaway, Runaway, and Exhaustion. Gaps acts as support/resistance.
HANG SENG INDEX is currently 4.9% above its 200-period moving average and is in an upward 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 bullish on .HSI and have had this outlook for the last 38 periods.

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