Hong Kong: HANG SENG INDEX (.HSI) swing lower after Fed rate hike

Hong Kong: HANG SENG INDEX (.HSI) swing lower after Fed rate hike

Hong Kong: HANG SENG INDEX (.HSI) swing lower after Fed rate hike

Asian stock markets finished lower Thursday after the U.S. Federal Reserve indicated two more rate hikes are coming later this year, and as Chinese economic data missed expectations.

Hong Kong’s Hang Seng Index HSI, -0.93% fell 0.9%. The Shanghai Composite SHCOMP, -0.18% lost 0.2% and the Shenzhen Composite 399106, -0.55% dropped 0.6%. The startup-heavy ChiNext dropped 0.8% to set another four-month closing low. It’s fallen 13 of the past 16 trading days.

The Federal Reserve on Wednesday lifted its benchmark federal funds rate by a quarter-percentage point — to a range of 1.75% to 2%, meeting expectations. The Fed also signaled that it plans a total of four rate increases in 2018 instead of three as previously planned. Wednesday’s hike was the second this year.

Overall, the bias in prices is: Downwards.

By the way, prices are vulnerable to a correction towards 30,784.45.

The projected upper bound is: 31,411.27.

The projected lower bound is: 29,482.94.

The projected closing price is: 30,447.11.

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 24 white candles and 26 black candles for a net of 2 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 13.8804. This is an oversold reading. However, a signal is not generated until the Oscillator crosses above 20 The last signal was a sell 4 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 44.61. 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 80 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 -64. This is not a topping or bottoming area. The last signal was a sell 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 0 period(s) ago.

Rex Takasugi – TD Profile

HANG SENG INDEX closed down -284.980 at 30,440.170. Volume was 1% above average (neutral) and Bollinger Bands were 43% narrower than normal.

Open High Low Close Volume___
30,684.07030,777.96130,349.96130,440.1702,194,211,328

Technical Outlook
Short Term: Oversold
Intermediate Term: Bullish
Long Term: Bullish

Moving Averages: 10-period 50-period 200-period
Close: 30,964.64 30,629.26 29,899.06
Volatility: 19 20 20
Volume: 1,847,785,088 1,868,625,920 2,149,828,608

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 1.8% 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 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 6 periods.

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