Hong Kong: HANG SENG INDEX (.HSI) stocks fall first time in four days

Hong Kong: HANG SENG INDEX (.HSI) stocks fall first time in four days

Hong Kong: HANG SENG INDEX (.HSI) stocks fall first time in four days

The Hang Seng Index lost 0.2 per cent to 28,885.14 at the close, snapping a three-day, 3.1 per cent gain.

Tencent Holdings (700 HK) and AAC Technologies Holdings (2018 HK) led the decline, while casino operators including Sands China (1928 HK) bucked the weakness.

Tencent Holdings (0700 HK), the most valuable constituent on the Hang Seng Index, fell below HK$400 after closing at an 18-month high of HK$406.4 yesterday.

It shed 1.9 per cent to HK$398.4 in afternoon trading. Tencent shares have been on a general upward since December 5 when it was trading at HKD$330, according to data from the Hong Kong stock exchange.

Macquarie Group has set a target of HK$410 for Tencent’s shares as it expects the WeChat business to provide growth momentum.

Technical Indicators

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 27,525.14.

The projected upper bound is: 29,759.00.

The projected lower bound is: 28,090.41.

The projected closing price is: 28,924.71.

Candlesticks

A black body occurred (because prices closed lower than they opened).
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 90.4201. 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 68.02. 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 7 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 153.This is an overbought reading. However, a signal isn’t generated until the indicator crosses below 100. The last signal was a sell 6 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 1 period(s) ago.

Rex Takasugi – TD Profile

HANG SENG INDEX closed down -69.799 at 28,885.141. Volume was 7% above average (neutral) and Bollinger Bands were 18% narrower than normal.

Open     High      Low     Close     Volume___
29,149.52929,149.52928,790.49028,885.1411,643,504,640
Technical Outlook 
Short Term: Overbought
Intermediate Term: Bullish
Long Term: Bullish
Moving Averages: 10-period     50-period     200-period
Close: 28,486.02 27,370.32 27,534.36
Volatility: 16 20 19
Volume: 1,528,945,408 1,494,773,120 1,684,197,120

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 4.9% 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 18 periods.

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