Hong Kong: HANG SENG INDEX (.HSI) stocks climbed after the financial hub gave its real estate sector reason to cheer
Asian markets were mostly quiet Thursday, but Hong Kong stocks climbed after the financial hub gave its real estate sector reason to cheer.
China’s Shanghai Composite Index (SHCOMP) traded flat, while Japan’s Nikkei 225 (N225) inched up 0.1% and South Korea’s Kospi (KOSPI) edged lower.
Hong Kong’s Hang Seng Index (HSI) advanced as much as 1.1% in the morning trading. It later dipped slightly but was still up 0.8%, boosted by local real estate developers after the city’s leader Carrie Lam unveiled a series of measures to loosen mortgage rules and encourage home buying.
New World Development (NDVLY), a major property owner and developer in Hong Kong, surged 4.3%. It was the top gainer on the benchmark index. Rivals Sun Hung Kai Properties (SUHJF) and CK Asset Holdings (CHKGF) climbed 2.5% and 1.8% respectively.
Lam delivered her third policy address on Wednesday, which was focused on measures trying to tackle the city’s rising property prices and lack of affordable housing. They include loosening the cap on how much first-time home buyers can borrow from banks.
The policy address came as ongoing protests hit the city’s economy and financial markets. Lam’s speech was repeatedly disrupted by pro-democracy lawmakers who jeered her over her response to the protests.
Overall, the bias in prices is: Upwards.
The projected upper bound is: 27,656.59.
The projected lower bound is: 26,075.29.
The projected closing price is: 26,865.94.
A white body occurred (because prices closed higher than they opened).
During the past 10 bars, there have been 7 white candles and 3 black candles for a net of 4 white candles. During the past 50 bars, there have been 22 white candles and 28 black candles for a net of 6 black candles.
A rising window occurred (where the top of the previous shadow is below the bottom of the current shadow). This usually implies a continuation of a bullish trend. There have been 3 rising windows in the last 50 candles–this makes the current rising window even more bullish.
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 91.5776. This is an overbought reading. However, a signal is not generated until the Oscillator crosses below 80 The last signal was a buy 11 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 61.33. 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 41 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 164.This is an overbought reading. However, a signal isn’t generated until the indicator crosses below 100. 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 3 period(s) ago.
Rex Takasugi – TD Profile
HANG SENG INDEX closed up 184.211 at 26,848.490. Volume was 14% below average (neutral) and Bollinger Bands were 38% narrower than normal.
Open High Low Close Volume___
Short Term: Overbought
Intermediate Term: Bullish
Long Term: Bearish
Moving Averages: 10-period 50-period 200-period
Close: 26,206.25 26,183.39 27,663.27
Volatility: 17 19 19
Volume: 1,587,094,016 1,702,517,632 1,784,954,240
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 gapped up today (bullish) 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 2.9% below 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 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.