Hong Kong: HANG SENG INDEX (.HSI) trade tensions continued to linger
Markets in Asia were mixed on Wednesday as trade tensions continued to linger between the U.S. and China.
Shares in mainland China edged down on the day, with the Shanghai composite declining 0.49% to 2,891.70 and the Shenzhen component lower by 0.51% to 9,041.22. The Shenzhen composite fell 0.506% to 1,540.85.
Shares of Chinese surveillance tech company Hikvision dropped 5.54% after the New York Times reported that the U.S. administration is pondering restrictions on the company’s ability to buy American technology.
Meanwhile, Hong Kong’s Hang Seng index rose about 0.2%, as of its final hour of trading.
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 28,559.87.
The projected upper bound is: 28,535.42.
The projected lower bound is: 26,823.19.
The projected closing price is: 27,679.31.
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.
Three black candles occurred in the last three days. Although these candles were not big enough to create three black crows, the steady downward pattern is bearish.
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.
One method of interpreting the Stochastic Oscillator is looking for overbought areas (above 80) and oversold areas (below 20). The Stochastic Oscillator is 10.5744. This is an oversold reading. However, a signal is not generated until the Oscillator crosses above 20 The last signal was a buy 5 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 30.95. This is not a topping or bottoming area. However, the RSI just crossed above 30 from a bottoming formation. This is a bullish sign. A buy or sell signal is generated when the RSI moves out of an overbought/oversold area. The last signal was a buy 0 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 -93. This is not a topping or bottoming area. The last signal was a buy 0 period(s) ago.
The Moving Average Convergence/Divergence indicator (MACD) gives signals when it crosses its 9 period signal line. The last signal was a sell 21 period(s) ago.
Rex Takasugi – TD Profile
HANG SENG INDEX closed up 48.699 at 27,705.939. Volume was 10% below average (neutral) and Bollinger Bands were 82% wider than normal.
Open High Low Close Volume___
Short Term: Oversold
Intermediate Term: Bearish
Long Term: Bullish
Moving Averages: 10-period 50-period 200-period
Close: 28,162.76 29,182.25 27,504.45
Volatility: 18 19 22
Volume: 2,383,676,928 1,991,442,432 1,844,563,712
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.
HANG SENG INDEX is currently 0.7% above 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 10 periods.