Hong Kong: HANG SENG INDEX (.HSI) showing signs of decoupling from US counterparts
Stock markets in mainland China and Hong Kong reversed earlier losses to close higher on Wednesday, shrugging off an overnight rout in US shares.
They bucked declines elsewhere in Asia that took their cues from a sell-off in the US, as traders re-assessed the strength of the world’s second-largest economy after a raft of measures to bolster growth.
Some suppliers of technology giant Apple fell in Hong Kong. FIT Hon Teng shed 1.4 per cent to HK$3.44 and Tongda Group Holdings fell 2.2 per cent to 98 Hong Kong cents.
Overall, the bias in prices is: Downwards.
The projected upper bound is: 27,120.58.
The projected lower bound is: 24,782.28.
The projected closing price is: 25,951.43.
A big white candle occurred. This is generally considered bullish, as prices closed significantly higher than they opened. If the candle appears when prices are “low,” it may be the first sign of a bottom. If it occurs when prices are rebounding off of a support area (e.g., a moving average, trendline, or retracement level), the long white candle adds credibility to the support. Similarly, if the candle appears during a breakout above a resistance area, the long white candle adds credibility to the breakout.
During the past 10 bars, there have been 6 white candles and 4 black candles for a net of 2 white candles. During the past 50 bars, there have been 23 white candles and 27 black candles for a net of 4 black 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 67.6341. This is not an overbought or oversold reading. The last signal was a sell 0 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 50.41. 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 27 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 -42. This is not a topping or bottoming area. The last signal was a sell 9 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 14 period(s) ago.
Rex Takasugi – TD Profile
HANG SENG INDEX closed up 131.131 at 25,971.471. Volume was 21% below average (neutral) and Bollinger Bands were 9% wider than normal.
Open High Low Close Volume___
Short Term: Neutral
Intermediate Term: Bullish
Long Term: Bearish
Moving Averages: 10-period 50-period 200-period
Close: 25,938.08 26,213.14 28,913.21
Volatility: 23 28 25
Volume: 1,502,578,560 1,907,150,336 2,037,813,760
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 10.2% below its 200-period moving average and is in an upward 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 bullish on .HSI and have had this outlook for the last 4 periods.