Hong Kong: Hang Seng Index (.HSI) returning to negative territory

Hong Kong: Hang Seng Index (.HSI) returning to negative territory

Hong Kong: Hang Seng Index (.HSI) returning to negative territory

Stocks in Asia were mixed on Tuesday, as the People’s Bank of China published its new loan prime rates which would result in cheaper borrowing costs for companies.

Mainland Chinese stocks were mixed on the day, with the Shanghai compositeshedding earlier as it slipped 0.11% to about 2,880.00. The Shenzhen component was flat at 9,328.73, while the Shenzhen composite added 0.137% to approximately 1,574.12.

In Japan, the Nikkei 225 rose 0.55% to close at 20,677.22, while the Topix index added 0.83% to finish its trading day at 1,506.77. Australia’s S&P/ASX 200 closed 1.2% higher at 6,545.00 as most of the sectors advanced. Over in South Korea, the Kospi gained 1.05% to end its trading day at 1,960.25.

In Hong Kong, the Hang Seng index returned to negative territory, slipping about 0.3% as of its final hour of trading. Hong Kong-listed shares of HSBC fell 1.21%..

Technical Indicators

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 26,962.29.

The projected upper bound is: 27,061.29.

The projected lower bound is: 25,347.90.

The projected closing price is: 26,204.60.


A black body occurred (because prices closed lower 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.

A spinning top occurred (a spinning top is a candle with a small real body). Spinning tops identify a session in which there is little price action (as defined by the difference between the open and the close). During a rally or near new highs, a spinning top can be a sign that prices are losing momentum and the bulls may be in trouble.

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 87.1610. This is an overbought reading. However, a signal is not generated until the Oscillator crosses below 80 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 40.50. 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 1 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 28. This is not a topping or bottoming area. The last signal was a buy 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 0 period(s) ago.

Rex Takasugi – TD Profile

HANG SENG INDEX closed down -60.301 at 26,231.539. Volume was 2% above average (neutral) and Bollinger Bands were 96% wider than normal.

Open     High      Low     Close     Volume___
Technical Outlook 
Short Term: Neutral
Intermediate Term: Bearish
Long Term: Bearish
Moving Averages: 10-period     50-period     200-period
Close: 25,821.85 27,652.30 27,608.92
Volatility: 20 20 21
Volume: 1,806,321,024 1,582,371,456 1,792,529,024

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 5.0% below its 200-period moving average and is in an downward 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 bearish on .HSI and have had this outlook for the last 16 periods.

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