Hong Kong: HANG SENG INDEX (.HSI) struggling for gains despite strong US earnings

Hong Kong: HANG SENG INDEX (.HSI) struggling for gains despite strong US earnings

Hong Kong: HANG SENG INDEX (.HSI) struggling for gains despite strong US earnings

Asia Pacific shares traded mixed on Thursday, despite strong quarterly earnings in the U.S. and after the U.K. government won a parliamentary confidence vote. Worries over China likely weighed on market sentiment.

Japan’s Nikkei 225 erased early gains of near 0.3 percent to close down 40.48 points, or 0.2 percent, at 20,402.27 while the Topix index added 5.43 points, or 0.35 percent, to 1,543.2.

The yen, considered a safe-haven asset, strengthened against the dollar, trading at 108.85 at 3:03 p.m. HK/SIN, climbing from an earlier session low of 109.12.

In South Korea, the Kospi also gave up early advances to close near flat. Australia’s benchmark ASX 200 rose 14.9 points, or 0.26 percent, to 5,850.1.

Markets in the Greater China region were mostly down: Hong Kong’s Hang Seng Index fell about 0.5 percent in late-afternoon trade. On the Chinese mainland, the Shanghai composite index fell 0.42 percent while the Shenzhen composite and Shenzhen component indices declined around 0.9 percent each.

Overall, the bias in prices is: Upwards.

By the way, prices are vulnerable to a correction towards 26,458.59.

The projected upper bound is: 27,728.11.

The projected lower bound is: 25,816.01.

The projected closing price is: 26,772.05.

Candlesticks

A black body occurred (because prices closed lower than they opened).
During the past 10 bars, there have been 6 white candles and 4 black candles for a net of 2 white candles. During the past 50 bars, there have been 27 white candles and 23 black candles for a net of 4 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 87.7206. This is an overbought reading. However, a signal is not generated until the Oscillator crosses below 80 The last signal was a buy 16 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 58.85. 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 65 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 96. 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 7 period(s) ago.

Rex Takasugi – TD Profile

HANG SENG INDEX closed down -146.469 at 26,755.631. Volume was 6% above average (neutral) and Bollinger Bands were 0% narrower than normal.

Open High Low Close Volume___
26,953.21127,012.18926,703.31126,755.6311,918,083,456

Technical Outlook
Short Term: Overbought
Intermediate Term: Bullish
Long Term: Bearish

Moving Averages: 10-period 50-period 200-period
Close: 26,377.46 26,107.02 27,977.24
Volatility: 22 23 23
Volume: 1,853,350,912 1,619,460,224 1,853,097,728

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 4.4% below 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 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 3 periods.

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