Hong Kong: HANG SENG INDEX (.HSI) rise for first time in seven days

Hong Kong: HANG SENG INDEX (.HSI) rise for first time in seven days

Hong Kong: HANG SENG INDEX (.HSI) rise for first time in seven days

Stocks listed in Hong Kong rose on Wednesday for the first time in seven days, as equities received a respite after a drop in US Treasury yields.

The Hang Seng Index rebounded by 0.1 per cent, snapping a losing streak that had sent the city’s benchmark down by 5.8 per cent over the past six days. Buying sentiment remained weak – the number of shares that changed hands on Wednesday was about a fifth below the bourse’s 30-day average, according to Bloomberg data. In mainland China, the Shanghai Composite Index rose for a second day.

The sell-off in Hong Kong stocks was halted after the yield on benchmark 10-year US Treasuries fell from a seven-year high. Higher US debt yields, which have already swept global financial markets, from stocks to developing economy currencies over the past week, weighed on equity valuations and triggered a capital flight, particularly from emerging economies.

Overall, the bias in prices is: Downwards.

Note: this chart shows extraordinary price action to the downside.

The projected upper bound is: 27,081.02.

The projected lower bound is: 25,203.52.

The projected closing price is: 26,142.27.

Candlesticks

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 20 white candles and 30 black candles for a net of 10 black candles.

A long upper shadow occurred. This is typically a bearish signal (particularly when it occurs near a high price level, at resistance level, or when the security is overbought).

Three black candles occurred in the last three days. Although these candles were not big enough to create three black crows, the steady downward pattern is bearish.

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 6.6534. This is an oversold reading. However, a signal is not generated until the Oscillator crosses above 20 The last signal was a sell 8 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 35.00. 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 17 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 -108.This is an oversold reading. However, a signal isn’t generated until the indicator crosses above -100. The last signal was a sell 8 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 4 period(s) ago.

Rex Takasugi – TD Profile

HANG SENG INDEX closed up 20.160 at 26,193.070. Volume was 7% below average (neutral) and Bollinger Bands were 11% wider than normal.

Open High Low Close Volume___
26,281.27926,499.84026,193.07026,193.0701,772,310,784

Technical Outlook
Short Term: Oversold
Intermediate Term: Bearish
Long Term: Bearish

Moving Averages: 10-period 50-period 200-period
Close: 26,930.37 27,501.89 29,694.22
Volatility: 19 22 22
Volume: 1,872,349,952 1,798,926,464 2,134,836,992

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 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 4 periods.

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