Hong Kong: HANG SENG INDEX (.HSI) slipped on the day after a turbulent session
Major Asian stock markets closed lower on Tuesday, as investors sought clarity on the U.S.-China trade front a day after President Donald Trump postponed a closely watched tariff deadline in early March.
In a volatile session Tuesday, mainland Chinese stocks slipped on the day after registering strong gains on Monday. The Shanghai composite fell 0.67 percent to around 2,941.52 while the Shenzhen component declined 0.499 percent to about 9,089.04. The Shenzhen composite shed 0.486 percent to approximately 1,549.71.
The moves came after Chinese stocks saw explosive gains on Monday on the back of optimism on the U.S.-China trade negotiations, which saw the Shanghai composite surge more than 5 percent into bull market territory.
Hong Kong’s Hang Seng index fell 0.65 percent, as of its final hour of trade.
Overall, the bias in prices is: Upwards.
Note: this chart shows extraordinary price action to the upside.
By the way, prices are vulnerable to a correction towards 27,463.61.
The projected upper bound is: 29,638.11.
The projected lower bound is: 28,026.80.
The projected closing price is: 28,832.46.
A black body occurred (because prices closed lower than they opened).
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 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 86.1473. This is an overbought reading. However, a signal is not generated until the Oscillator crosses below 80 The last signal was a sell 7 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 66.69. This is not a topping or bottoming area. However, the RSI just crossed below 70 from a topping formation. This is a bearish sign. A buy or sell signal is generated when the RSI moves out of an overbought/oversold area. The last signal was a sell 0 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 118.This is an overbought reading. However, a signal isn’t generated until the indicator crosses below 100. The last signal was a sell 5 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 2 period(s) ago.
Rex Takasugi – TD Profile
HANG SENG INDEX closed down -187.240 at 28,772.061. Volume was 62% above average (neutral) and Bollinger Bands were 22% 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: 28,509.72 26,982.73 27,676.99
Volatility: 19 19 23
Volume: 2,069,582,080 1,715,787,520 1,842,808,832
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 4.0% above its 200-period moving average and is in an upward trend. Volatility is relatively normal as compared to the average volatility over the last 10 periods. Our volume indicators reflect moderate flows of volume into .HSI (mildly bullish). Our trend forecasting oscillators are currently bullish on .HSI and have had this outlook for the last 28 periods.