Hong Kong: HANG SENG INDEX (.HSI) seeing some long-term institutional buying coming back
Hong Kong shares ended at a nine-month high on Tuesday after economic data from the world’s largest economies allayed worries about a global downturn.
The Hang Seng Index added 0.2% to 29,624.67, its highest closing since June 20. Casino operators Galaxy Entertainment Group and Sands China rose 4.1% and 2.1%, respectively, building on their advances on Monday, when gaming revenue data released by the Macao government came in better than expected. Wynn Macau and MGM China Holdings rose 1.5% and 1.1%, respectively.
The three key U.S. equity indexes each rose more than 1% on Monday, after better-than-expected factory activity data from the U.S. and China helped ease concerns of a global slowdown. The Hang Seng Index entered a technical bull market on Monday — rising more than 20% from its October lows. It has risen 14.5% so far in 2019 as hopes of a resolution to Sino-American trade tensions and receding concerns over rising U.S. interest rates helped.
The Hong Kong stock market’s valuation “has gone from cheap to normal,” said Kevin Leung, director of global investment strategy at Haitong International Securities. “We are seeing some long-term institutional buying coming back, both international and mainland.”
The gauge “still has room to rise, but the climb will not be straight,” he said.
Overall, the bias in prices is: Upwards.
Note: this chart shows extraordinary price action to the upside.
The projected upper bound is: 30,398.45.
The projected lower bound is: 28,965.66.
The projected closing price is: 29,682.05.
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 32 white candles and 18 black candles for a net of 14 white candles.
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.
One method of interpreting the Stochastic Oscillator is looking for overbought areas (above 80) and oversold areas (below 20). The Stochastic Oscillator is 92.9993. This is an overbought reading. However, a signal is not generated until the Oscillator crosses below 80 The last signal was a buy 3 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 64.59. 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 25 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 131.This is an overbought reading. However, a signal isn’t generated until the indicator crosses below 100. The last signal was a sell 8 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 up 62.650 at 29,624.670. Volume was 8% above average (neutral) and Bollinger Bands were 17% narrower than normal.
Open High Low Close Volume___
Short Term: Overbought
Intermediate Term: Bullish
Long Term: Bullish
Moving Averages: 10-period 50-period 200-period
Close: 29,033.77 28,448.85 27,438.95
Volatility: 19 16 22
Volume: 1,923,336,576 1,900,020,096 1,854,307,712
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.
HANG SENG INDEX is currently 8.0% 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 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 0 periods. The security price has set a new 14-period high while our momentum oscillator has not. This is a bearish divergence.
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