Hong Kong: HANG SENG INDEX (.HSI) regains some lost ground despite virus jitters

Hong Kong: HANG SENG INDEX (.HSI) regains some lost ground despite virus jitters

Hong Kong: HANG SENG INDEX (.HSI) regains some lost ground despite virus jitters

Hong Kong shares recovered some of the previous day’s sharp losses on bargain-buying on Wednesday but traders remain on edge as they await developments linked to the deadly Sars-like virus that has spread from China.

The Hang Seng index climbed 1.3 percent, to close at 28,341.

On the mainland, the Shanghai Composite Index rose 0.3 percent, to 3,060 and the Shenzhen Composite Index gained 0.7 percent, to 1,819.

Most markets across Asia were in positive territory as traders kept tabs on developments linked to the virus.

“The main focus for investors still appears to be on the underlying economic data,” said Michael Hewson of CMC Markets UK.

Tokyo ended up 0.7 percent, while Sydney rose 0.9 percent and Wellington added 0.7 percent. Singapore put on 0.2 percent.

Seoul climbed more than 1 percent after data showed South Korea’s economic growth rallied at the end of last year, indicating a bright outlook for 2020. There were small losses in Manila and Mumbai.

Technical Indicators

Overall, the bias in prices is: Upwards.

By the way, prices are vulnerable to a correction towards 27,651.30.

The projected upper bound is: 29,257.07.

The projected lower bound is: 27,452.60.

The projected closing price is: 28,354.84.

Candlesticks

A white body occurred (because prices closed higher 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 24 white candles and 26 black candles for a net of 2 black candles.

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 19.5817. This is an oversold reading. However, a signal is not generated until the Oscillator crosses above 20 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 52.41. 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 sell 13 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 -83. 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 1 period(s) ago.

Rex Takasugi – TD Profile

HANG SENG INDEX closed up 355.709 at 28,341.039. Volume was 11% below average (neutral) and Bollinger Bands were 25% narrower than normal.

Open     High      Low     Close     Volume___
28,116.50028,393.93027,937.68028,341.0391,343,288,064
Technical Outlook 
Short Term: Oversold
Intermediate Term: Bullish
Long Term: Bullish
Moving Averages: 10-period     50-period     200-period
Close: 28,687.46 27,496.66 27,527.50
Volatility: 24 21 19
Volume: 1,616,907,008 1,504,966,656 1,671,850,496

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 is currently 3.0% 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 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 24 periods.

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