Hong Kong: HANG SENG INDEX (.HSI) stocks plunge more than 1,000 points in worst fall in more than two years
The benchmark stock index of Asia’s third-largest financial market made its biggest intraday percentage drop in more than two years, as plunging oil prices added to the weight of a spreading coronavirus outbreak in driving more investors to clear their holdings.
The Hang Seng Index plunged by as much as 4.3 per cent, or by 1,121.62 points, to 25,025.05, the worst one-day drop since the 5.1 per cent plunge on 6 February, 2018.
Technical Indicators
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 27,043.76.
The projected upper bound is: 26,074.77.
The projected lower bound is: 23,891.52.
The projected closing price is: 24,983.14.
Candlesticks
A black body occurred (because prices closed lower 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 26 white candles and 24 black candles for a net of 2 white candles.
A falling window occurred (where the bottom of the previous shadow is above the top of the current shadow). This usually implies a continuation of a bearish trend. There have been 7 falling windows in the last 50 candles–this makes the current falling window even more bearish.
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 28.4494. This is not an overbought or oversold reading. The last signal was a buy 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 28.84. This is where it usually bottoms. The RSI usually forms tops and bottoms before the underlying security. A buy or sell signal is generated when the RSI moves out of an overbought/oversold area. The last signal was a sell 44 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 -208.This is an oversold reading. However, a signal isn’t generated until the indicator crosses above -100. The last signal was a buy 4 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 sell 10 period(s) ago.
Rex Takasugi – TD Profile
HANG SENG INDEX closed down -1,106.209 at 25,040.461. Volume was 176% above average (trending) and Bollinger Bands were 40% wider than normal.
Open High Low Close Volume___
25,134.02025,321.27924,948.38125,040.4614,677,892,608
Technical Outlook
Short Term: Neutral
Intermediate Term: Bearish
Long Term: Bearish
Moving Averages: 10-period 50-period 200-period
Close: 26,325.18 27,558.68 27,158.08
Volatility: 34 26 21
Volume: 2,540,713,984 1,832,275,456 1,670,313,984
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 gapped down today (bearish) on heavy volume. Possibility of a Breakaway Gap which usually signifies the beginning of a major market move. Four types of price gaps exist – Common, Breakaway, Runaway, and Exhaustion. Gaps acts as support/resistance.
HANG SENG INDEX is currently 7.8% below its 200-period moving average and is in an downward trend. Volatility is extremely high when compared to the average volatility over the last 10 periods. There is a good possibility that volatility will decrease and prices will stabilize in the near term. 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 28 periods. Our momentum oscillator is currently indicating that .HSI is currently in an oversold condition.
Hong Kong: HANG SENG INDEX (.HSI) stocks plunge more than 1,000 points in worst fall in more than two years added by HEFFX on
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