Hong Kong: HANG SENG INDEX (.HSI) stocks end higher as trade optimism boosts sentiment
Hang Seng index up 0.83 pct HSCE rises 0.13 pct HSI financial sub-index 1.3 pct higher; property up 0.9 pct
Hong Kong stocks closed firmer on Thursday as investors cheered signs of progress in the U.S.-China trade negotiations, while financials and property shares boosted the index after the U.S. Federal Reserve kept the target range for policy rate steady.
At the close of trade, the Hang Seng index was up 245.07 points, or 0.83 percent, at 29,944.18. The Hang Seng China Enterprises index closed 0.13 percent higher at 11,556.72.
Overall, the bias in prices is: Upwards.
The projected upper bound is: 30,678.58.
The projected lower bound is: 29,291.51.
The projected closing price is: 29,985.05.
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 27 white candles and 23 black candles for a net of 4 white candles.
An engulfing bullish line occurred (where a white candle’s real body completely contains the previous black candle’s real body). The engulfing bullish pattern is bullish during a downtrend. It then signifies that the momentum may be shifting from the bears to the bulls.
If the engulfing bullish pattern occurs during an uptrend (which appears to be the case with HANG SENG INDEX), it may be a last engulfing top which indicates a top. The test to see if this is the case is if the next candle closes below the top of the current (white) candle’s real body.
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 60.9442. This is not an overbought or oversold reading. The last signal was a buy 2 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 57.42. 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 13 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 -15. This is not a topping or bottoming area. The last signal was a buy 2 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 sell 8 period(s) ago.
Rex Takasugi – TD Profile
HANG SENG INDEX closed up 245.070 at 29,944.180. Volume was 26% below average (neutral) and Bollinger Bands were 58% narrower than normal.
Open High Low Close Volume___
Short Term: Neutral
Intermediate Term: Bullish
Long Term: Bullish
Moving Averages: 10-period 50-period 200-period
Close: 29,867.78 29,245.18 27,501.51
Volatility: 13 15 22
Volume: 1,739,237,504 1,960,089,088 1,810,088,576
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 8.9% above its 200-period moving average and is in an upward trend. Volatility is low 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 18 periods.