Hong Kong: HANG SENG INDEX (.HSI) retreats modestly, while energy companies’ stock gains

Hong Kong: HANG SENG INDEX (.HSI) retreats modestly, while energy companies’ stock gains

Hong Kong: HANG SENG INDEX (.HSI) retreats modestly, while energy companies’ stock gains

Asian markets were largely down in early trading Tuesday as oil prices surged to nearly six-month highs after the U.S. said it would soon impose sanctions on all buyers of Iranian oil.

Japan’s Nikkei NIK, +0.19% was off 0.2%, while Hong Kong’s Hang Seng Index HSI, +0.00% was down about 0.1%. The Shanghai Composite SHCOMP, -0.51% slipped 0.8% and the smaller-cap Shenzhen Composite 399106, -1.32% dropped 1.4%. South Korea’s Kospi SEU, +0.17% was about flat, and benchmark indexes in Taiwan Y9999, +0.35% and Singapore STI, -0.13% pulled back slightly. Australia’s S&P/ASX 200 XJO, +0.95% gained 0.8%.

Among individual stocks, Rakuten 4755, -4.17% , Fast Retailing 9983, -1.84% and Nintendo 7974, -3.60% slumped in Tokyo trading, while oil producer Inpex 1605, +2.78% jumped. In Hong Kong, CNOOC 0883, +1.49% and China Life Insurance 2628, +1.60% gained while real estate companies such as Country Garden 2007, -2.94% and China Overseas Land & Investment 0688, -1.74% declined. Hyundai Motor 005380, +1.49% rose in South Korea, while Foxconn 2354, +0.72% slipped in Taiwan. Energy companies such as Beach Energy BPT, +4.21% and Woodside Petroleum WPL, +2.55% advanced in Australia.

There was no strong impetus for buying in Asia. Reports from a recent high-level meeting in China, which was chaired by President Xi Jinping, showed willingness to fine-tune monetary policy but raised questions about future government stimulus. Traders were waiting for a slew of U.S. earnings reports from big companies such as Twitter TWTR, +0.18% starting Tuesday.

Overall, the bias in prices is: Upwards.

By the way, prices are vulnerable to a correction towards 28,705.63.

The projected upper bound is: 30,717.51.

The projected lower bound is: 29,287.89.

The projected closing price is: 30,002.70.

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 29 white candles and 21 black candles for a net of 8 white 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 57.2268. This is not an overbought or oversold reading. The last signal was a sell 6 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 60.65. 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 7 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 0. This is not a topping or bottoming area. The last signal was a sell 7 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 2 period(s) ago.

Rex Takasugi – TD Profile

HANG SENG INDEX closed down -0.020 at 29,963.240. Volume was 12% above average (neutral) and Bollinger Bands were 23% wider than normal.

Open High Low Close Volume___
29,782.94930,055.93929,755.86929,963.2402,068,274,560

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

Moving Averages: 10-period 50-period 200-period
Close: 30,009.52 29,057.09 27,463.67
Volatility: 10 16 22
Volume: 2,042,309,248 1,977,350,016 1,835,027,712

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 9.1% 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 12 periods.

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