Hong Kong: HANG SENG INDEX (.HSI) To Continue Losing Streak

Hong Kong: HANG SENG INDEX (.HSI) To Continue Losing Streak

Hong Kong: HANG SENG INDEX (.HSI) To Continue Losing Streak

The Hong Kong stock market has finished lower in four straight sessions, tumbling more than 1,425 points or 5.6 percent along the way. The Hang Seng Index now rests just beneath the 24,720-point plateau and it’s in one for further damage on Monday.

The global forecast for the Asian markets is soft thanks to disappointing corporate results and economic data that fueled concerns over interest rate hikes. The European and U.S. markets were down and the Asian markets are expected to open in similar fashion.

The Hang Seng finished sharply lower on Friday following losses from the financials, casinos and insurance companies, while the oil stocks and properties offered support.

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 27,000.96.

The projected upper bound is: 25,812.17.

The projected lower bound is: 23,711.45.

The projected closing price is: 24,761.81.

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 22 white candles and 28 black candles for a net of 6 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 14.8767. This is an oversold reading. However, a signal is not generated until the Oscillator crosses above 20 The last signal was a buy 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 33.24. 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 10 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 -138.This is an oversold reading. However, a signal isn’t generated until the indicator crosses above -100. The last signal was a buy 8 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 16 period(s) ago.

Rex Takasugi – TD Profile

HANG SENG INDEX closed up 94.408 at 24,812.039. Volume was 8% above average (neutral) and Bollinger Bands were 40% wider than normal.

Open High Low Close Volume___
24,955.78924,955.78924,594.74024,812.0392,062,872,064

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

Moving Averages: 10-period 50-period 200-period
Close: 25,319.69 26,852.60 29,432.92
Volatility: 26 25 23
Volume: 1,940,332,928 1,906,145,536 2,148,252,160

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 15.7% below its 200-period moving average and is in an downward trend. Volatility is high as compared to the average volatility over the last 10 periods. Our volume indicators reflect moderate flows of volume out of .HSI (mildly bearish). Our trend forecasting oscillators are currently bearish on .HSI and have had this outlook for the last 16 periods.

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