Hong Kong: HANG SENG INDEX (.HSI) recover their poise after Fed jolt
The Fed signaled its confidence in the U.S. economy by raising a key interest rate for a third time this year. It lifted its short-term rate — a benchmark for many consumer and business loans — by a quarter-point to a range of 2 percent to 2.25 percent and hinted at another hike in December and further increases next year.
It also dropped the word “accommodative” to describe its monetary policy stance, though Fed Chairman Jerome Powell sought to downplay that move. “Our economy is strong,” he said. “Growth is running at a healthy clip, unemployment is low. The number of people working is rising steadily, and wages are up. Inflation is low and stable, all of these are very good signs.”
Japan’s Nikkei 225 dropped 1.0 percent to 23,796.74. South Korea’s Kospi, which reopened after a national holiday, added 0.7 percent to 2,355.43. ’s Hang Seng index slipped 0.4 percent to 27,715.67. The Shanghai Composite Index lost 0.5 percent to 2,791.77. Australia’s S&P ASX 200 was 0.2 percent lower at 6,181.20.
Overall, the bias in prices is: Downwards.
Note: this chart shows extraordinary price action to the downside.
By the way, prices are vulnerable to a correction towards 27,353.38.
The projected upper bound is: 26,433.07.
The projected lower bound is: 24,402.89.
The projected closing price is: 25,417.98.
A black body occurred (because prices closed lower than they opened).
During the past 10 bars, there have been 3 white candles and 7 black candles for a net of 4 black 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 30.7063. This is not an overbought or oversold reading. 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 33.41. 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 2 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 -98. This is not a topping or bottoming area. The last signal was a buy 0 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 8 period(s) ago.
Rex Takasugi – TD Profile
HANG SENG INDEX closed up 17.199 at 25,462.260. Volume was 21% below average (neutral) and Bollinger Bands were 58% wider 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: 26,083.14 27,295.10 29,622.17
Volatility: 27 24 23
Volume: 1,952,224,256 1,833,845,760 2,143,557,888
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 14.0% 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 8 periods.
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