Hong Kong: HANG SENG INDEX (.HSI) rising diplomatic tensions between Beijing and Ottawa

Hong Kong: HANG SENG INDEX (.HSI) rising diplomatic tensions between Beijing and Ottawa

Hong Kong: HANG SENG INDEX (.HSI) rising diplomatic tensions between Beijing and Ottawa

Stocks in Hong Kong and China fell in morning trading on Friday on the back of weak November economic data and rising diplomatic tensions between Beijing and Ottawa.

The benchmark Hang Seng Index slipped 1.4 per cent, or 372.24 points, to 26,152.11 as of 11:30am. The Shanghai Composite Index dropped 0.6 per cent, or 14.98 points, to 2,619.07.

China’s industrial output expanded by 5.4 per cent in November from the same period of last year, slower than the 5.9 per cent gain recorded in October and below the 5.9 per cent forecast by analysts in a Reuters poll.

Overall, the bias in prices is: Downwards.

The projected upper bound is: 27,247.38.

The projected lower bound is: 24,921.04.

The projected closing price is: 26,084.21.

Candlesticks

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 falling window occurred (where the bottom of the previous shadow is above the top of the current shadow). This usually implies a continuation of a bearish trend. There have been 8 falling windows in the last 50 candles–this makes the current falling window even more 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 73.9036. 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 48.40. 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 44 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 -53. This is not a topping or bottoming area. The last signal was a buy 2 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 5 period(s) ago.

Rex Takasugi – TD Profile

HANG SENG INDEX closed down -429.561 at 26,094.789. Volume was 24% below average (neutral) and Bollinger Bands were 22% narrower than normal.

Open High Low Close Volume___
26,219.00026,219.00026,061.47126,094.7891,385,942,400

Technical Outlook
Short Term: Neutral
Intermediate Term: Bullish
Long Term: Bearish

Moving Averages: 10-period 50-period 200-period
Close: 26,381.22 25,931.30 28,507.10
Volatility: 29 29 23
Volume: 1,831,048,832 1,827,880,704 1,914,497,920

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 gapped down today (bearish) on normal volume. Possibility of a Runaway Gap which usually signifies a continuation of the trend. Four types of price gaps exist – Common, Breakaway, Runaway, and Exhaustion. Gaps acts as support/resistance.
HANG SENG INDEX is currently 8.5% below its 200-period moving average and is in an upward trend. Volatility is Our volume indicators reflect volume flowing into and out of .HSI at a relatively equal pace (neutral). Our trend forecasting oscillators are currently bullish on .HSI and have had this outlook for the last 21 periods.

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