Hong Kong: HANG SENG INDEX (.HSI) stocks fall as huge protests hit financial center

Hong Kong: HANG SENG INDEX (.HSI) stocks fall as huge protests hit financial center

Hong Kong: HANG SENG INDEX (.HSI) stocks fall as huge protests hit financial center

Stocks dropped in Hong Kong on Wednesday as tens of thousands of people marched through the city’s financial district to protest a controversial extradition bill.

The Hang Seng index ended the day 1.7% lower. Leading the sell-off were property companies like Wharf Real Estate Investment, which fell 5.4%, and New World Development, which declined 4.2%.

“We’re going to see a hit on the markets because the ramifications of the bill are so significant,” said Richard Harris, chief executive officer of Port Shelter Investment Management.

The bill, which would enable China to extradite people from Hong Kong, was due to be debated by lawmakers in a Legislative Council session on Wednesday.

Overall, the bias in prices is: Downwards.

Note: this chart shows extraordinary price action to the downside.

By the way, prices are vulnerable to a correction towards 27,955.11.

The projected upper bound is: 28,111.49.

The projected lower bound is: 26,455.10.

The projected closing price is: 27,283.29.

Candlesticks

A big black candle occurred. This is bearish, as prices closed significantly lower than they opened. If the candle appears when prices are “high,” it may be the first sign of a top. If it occurs when prices are confronting an overhead resistance area (e.g., a moving average, trendline, or price resistance level), the long black candle adds credibility to the resistance. Similarly, if the candle appears as prices break below a support area, the long black candle confirms the failure of the support area.
During the past 10 bars, there have been 4 white candles and 6 black candles for a net of 2 black candles. During the past 50 bars, there have been 26 white candles and 24 black candles for a net of 2 white candles.

Momentum Indicators

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.

Stochastic Oscillator

One method of interpreting the Stochastic Oscillator is looking for overbought areas (above 80) and oversold areas (below 20). The Stochastic Oscillator is 79.6615. 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 41.94. 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 3 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 53. This is not a topping or bottoming area. The last signal was a sell 0 period(s) ago.

MACD

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 down -480.879 at 27,308.461. Volume was 3% below average (neutral) and Bollinger Bands were 12% narrower than normal.

Open High Low Close Volume___
27,603.11927,603.11927,222.02927,308.4611,924,622,848

Technical Outlook
Short Term: Neutral
Intermediate Term: Bearish
Long Term: Bearish

Moving Averages: 10-period 50-period 200-period
Close: 27,144.42 28,705.64 27,436.83
Volatility: 19 18 22
Volume: 1,923,121,664 2,033,270,784 1,873,483,904

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.

Summary

HANG SENG INDEX is currently 0.5% below its 200-period moving average and is in an downward 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 bearish on .HSI and have had this outlook for the last 24 periods.

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