Hong Kong: HANG SENG INDEX (.HSI) stocks hit longest losing streak in six weeks
Hong Kong stocks fell for a fourth straight day, their longest losing streak in six weeks, on concerns there will be more protests ahead of China’s National Day.
The Hang Seng Index dropped 1.1 per cent to 26,468.95 at the close on Thursday. The four-day decline was the longest since a stretch of five days that ended on August 6. Cosmetics retailer Sa Sa International Holdings said the civil unrest in the city was hurting its sales.
Concerns were running high that more demonstrations will be organised in the build-up to China’s National Day holiday that falls on October 1. The Hong Kong government said this week that it would not concede to other demands by the protesters after withdrawing the controversial extradition bill that sparked the crisis.
China’s Shanghai Composite Index fared better, mainly thanks to a late rally, as traders shifted their focus to the forthcoming release of the prime rate on loans for signals of further policy easing. The index rose 0.5 per cent to 2,999.28 for a second day of gains.
The loan prime rate, which is now released on a monthly basis after an overhaul by the central bank last month, is due on Friday. The 1-year charge on the borrowing cost will probably fall by five basis points to 4.20, according to a Bloomberg survey.
Tianjin Printronics Circuit jumped by the 10 per cent daily limit to 12.71 yuan in Shenzhen on a plan by its parent company to start mixed-ownership reforms.
Tianjin Zhonghuan Electronic and Information Group, which has a 25 per cent stake in the listed company, began the process of asset checks, auditing and evaluation ahead of the move, according to an exchange statement.
Overall, the bias in prices is: Downwards.
The projected upper bound is: 27,303.86.
The projected lower bound is: 25,555.53.
The projected closing price is: 26,429.69.
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 2 white candles and 8 black candles for a net of 6 black candles. During the past 50 bars, there have been 23 white candles and 27 black candles for a net of 4 black candles.
Three black candles occurred in the last three days. Although these candles were not big enough to create three black crows, the steady downward pattern is bearish.
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 10.7966. This is an oversold reading. However, a signal is not generated until the Oscillator crosses above 20 The last signal was a sell 3 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 47.60. 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 23 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 -12. This is not a topping or bottoming area. The last signal was a sell 3 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 22 period(s) ago.
Rex Takasugi – TD Profile
HANG SENG INDEX closed down -285.170 at 26,468.949. Volume was 23% below average (neutral) and Bollinger Bands were 1% narrower than normal.
Open High Low Close Volume___
Short Term: Oversold
Intermediate Term: Bullish
Long Term: Bearish
Moving Averages: 10-period 50-period 200-period
Close: 26,879.31 26,851.07 27,673.76
Volatility: 17 21 20
Volume: 1,666,297,984 1,654,430,080 1,796,861,312
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 4.4% below its 200-period moving average and is in an upward 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 bullish on .HSI and have had this outlook for the last 8 periods.