Hong Kong: HANG SENG INDEX (.HSI) Supported by ‘Soft’ Risk On Theme

Hong Kong: HANG SENG INDEX (.HSI) Supported by ‘Soft’ Risk On Theme

Hong Kong: HANG SENG INDEX (.HSI) Supported by ‘Soft’ Risk On Theme

The major Asia Pacific stock indexes finished mostly higher on Monday as the “risk on” theme continued following last week’s announcement that the United States and China were set to resume trade talks in early October. There was also a limited response to Friday’s mixed U.S. Non-Farm Payrolls report and the news that China’s exports unexpectedly fell in August. Perhaps underpinning the markets was the news that China’s central bank announced new stimulus measures.

On Monday, Japan’s Nikkei 225 Index settled at 21318.42, up 118.85 or +0.56%. Hong Kong’s Hang Seng Index finished at 26681.40, down 9.36 or -0.04% and South Korea’s KOSPI Index closed at 2019.55, up 10.42 or +0.52%.

China’s Shanghai Index settled at 3024.74, up 25.14 or +0.84% and Australia’s S&P/ASX 200 finished at 6648.00, up 0.70 or +0.01%.

Technical Indicators

Overall, the bias in prices is: Sideways.

The projected upper bound is: 27,505.62.

The projected lower bound is: 25,782.73.

The projected closing price is: 26,644.18.

Candlesticks

A black body occurred (because prices closed lower than they opened).
During the past 10 bars, there have been 3 white candles and 7 black candles for a net of 4 black candles. During the past 50 bars, there have been 23 white candles and 27 black candles for a net of 4 black 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 89.2480. This is an overbought reading. However, a signal is not generated until the Oscillator crosses below 80 The last signal was a sell 10 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 56.46. 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 15 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 126.This is an overbought reading. However, a signal isn’t generated until the indicator crosses below 100. The last signal was a buy 18 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 14 period(s) ago.

Rex Takasugi – TD Profile

HANG SENG INDEX closed down -9.359 at 26,681.400. Volume was 5% below average (neutral) and Bollinger Bands were 25% narrower than normal.

Open     High      Low     Close     Volume___
26,743.35926,807.85926,609.65026,681.4001,700,948,224
Technical Outlook 
Short Term: Overbought
Intermediate Term: Bullish
Long Term: Bearish
Moving Averages: 10-period     50-period     200-period
Close: 26,027.31 27,110.37 27,640.62
Volatility: 23 21 20
Volume: 1,820,475,648 1,593,643,392 1,784,557,568

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 3.5% 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 0 periods.

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