Hong Kong: HANG SENG INDEX (.HSI) Stocks Boosted by Beijing Pledge to step up investment in key areas
Headline indices of the Hong Kong share market closed higher on Wednesday, 19 September 2018, with investor sentiment buoyed by gains on Wall Street overnight and gains in other Asian market today. Stocks were also boosted by Beijing pledging to step up investment in key areas of the economy to offset the adverse impact from the trade war and refraining from using heavy-handed measures to retaliate against the US. The Hang Seng Index added 322.71 points or 1.19% to 27,407.37. The Hang Seng China Enterprises Index rose 184.71 points or 1.75% to 10,741.69. Turnover increased to HK$96.4 billion from HK$86.4 billion on Tuesday.
Equity markets in Asia took their cues from Wall Street overnight, which posted a broad-based rally on Tuesday amid emerging views that the US-China trade dispute’s impact on world growth might not be as heavy as previously feared.
Overall, the bias in prices is: Downwards.
By the way, prices are vulnerable to a correction towards 28,289.63.
The projected upper bound is: 28,251.87.
The projected lower bound is: 26,526.70.
The projected closing price is: 27,389.28.
A white body occurred (because prices closed higher 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 22 white candles and 28 black candles for a net of 6 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 75.8640. This is not an overbought or oversold reading. The last signal was a sell 1 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 49.39. 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 4 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 37. This is not a topping or bottoming area. The last signal was a buy 4 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 1 period(s) ago.
Rex Takasugi – TD Profile
HANG SENG INDEX closed up 322.709 at 27,407.369. Volume was 1% above average (neutral) and Bollinger Bands were 25% wider than normal.
Open High Low Close Volume___
Short Term: Neutral
Intermediate Term: Bearish
Long Term: Bearish
Moving Averages: 10-period 50-period 200-period
Close: 26,905.51 27,861.97 29,817.31
Volatility: 23 20 22
Volume: 2,063,156,992 1,750,086,784 2,144,357,248
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 8.1% 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 10 periods. Our momentum oscillator has set a new 14-period high while the security price has not. This is a bullish divergence.