Hong Kong: HANG SENG INDEX (.HSI) Rally May Stall
The Hong Kong stock market has moved higher in back-to-back trading days, gathering almost 200 points or 0.8 percent along the way. The Hang Seng Index now rests just above the 25,790-point plateau although investors may cash in on Wednesday.
The global forecast for the Asian markets is mixed and flat thanks to ongoing concerns over the outlook for interest rates and a plunge in crude oil prices. The European markets were slightly higher and the U.S. bourse were mixed and little changed and the Asian markets should split the difference.
The Hang Seng finished modestly higher on Tuesday following gains from the financials and insurance companies, while the properties and oil stocks were mixed.
For the day, the index advanced 159.69 points or 0.62 percent to finish at the daily high of 25,792.87 after moving as low as 25,092.30.
The choppy trading on Wall Street came as traders continued to express uncertainty about the global economic outlook and the impact of an anticipated increase in interest rates.
Initial strength came after reports that high-level U.S.-China trade talks have resumed ahead of a meeting between U.S. President Donald Trump and Chinese President Xi Jinping later this month.
Crude oil futures plunged sharply on Tuesday, extending fall to a 12th straight session as rising output and falling demand weighed. Crude oil futures for December ended down $4.24 or 7.1 percent at $55.69 a barrel, the lowest closing level in almost a year.
Overall, the bias in prices is: Downwards.
The projected upper bound is: 26,785.08.
The projected lower bound is: 24,434.42.
The projected closing price is: 25,609.75.
A black body occurred (because prices closed lower 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 21 white candles and 29 black candles for a net of 8 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 36.4892. This is not an overbought or oversold reading. The last signal was a sell 5 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 47.07. 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 22 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 16. This is not a topping or bottoming area. 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 buy 9 period(s) ago.
Rex Takasugi – TD Profile
HANG SENG INDEX closed down -138.439 at 25,654.430. Volume was 20% below average (neutral) and Bollinger Bands were 1% narrower than normal.
Open High Low Close Volume___
Short Term: Neutral
Intermediate Term: Bearish
Long Term: Bearish
Moving Averages: 10-period 50-period 200-period
Close: 25,901.55 26,341.29 29,084.18
Volatility: 34 28 24
Volume: 1,897,329,152 1,961,936,128 2,099,737,600
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 11.8% 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 28 periods.