Hong Kong: HANG SENG INDEX (.HSI) two-day rally has helped erase losses

Hong Kong: HANG SENG INDEX (.HSI) two-day rally has helped erase losses

Hong Kong: HANG SENG INDEX (.HSI) two-day rally has helped erase losses

Today’s rally across Asian stock markets has put the regional benchmark index in the green for the week. Barely.

The MSCI Asia Pacific Index climbed 0.6 percent as of 4:52 p.m in Hong Kong on Wednesday. Its two-day rally has helped erase losses in the first two days of the week, with it now up 0.2 percent since Monday. Whether or not it will stay that way depends on no surprises till the close… and what happens in the next 24 hours or so.

So far on Thursday, things have been looking up:

  • Chinese importers have purchased 1.5 million to 2 million metric tons of American soy, marking the nation’s first significant purchase of U.S. soy since the trade war. according to the U.S. Soybean Export Council.
  • On the technology front, China is mulling the delay of some targets in its strategy to dominate high-end technologies, which is viewed as a step to ease trade tensions with America.
  • Chinese stocks jumped as investors bet next week’s economic policy meeting will signal further easing, spurring gains in property developers to infrastructure companies
  • The National Development and Reform Commission will focus on supporting bond issuance by Chinese companies with a sound credit record and major contribution to the local economy or industrial upgrade, according to the top economic planner.

Overall, the bias in prices is: Sideways

The projected upper bound is: 27,678.74.

The projected lower bound is: 25,347.29.

The projected closing price is: 26,513.01.

Candlesticks

A white body occurred (because prices closed higher 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.

A rising window occurred (where the top of the previous shadow is below the bottom of the current shadow). This usually implies a continuation of a bullish trend. There have been 6 rising windows in the last 50 candles–this makes the current rising window even more bullish.

Three white candles occurred in the last three days. Although these candles were not big enough to create three white soldiers, the steady upward pattern is bullish.

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 55.9217. This is not an overbought or oversold reading. The last signal was a buy 1 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 54.04. 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 43 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 11. This is not a topping or bottoming area. The last signal was a buy 1 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 4 period(s) ago.

Rex Takasugi – TD Profile

HANG SENG INDEX closed up 337.639 at 26,524.350. Volume was 1% below average (neutral) and Bollinger Bands were 23% narrower than normal.

Open High Low Close Volume___
26,417.89126,581.93026,314.77026,524.3501,801,273,344

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

Moving Averages: 10-period 50-period 200-period
Close: 26,422.42 25,941.88 28,532.96
Volatility: 28 29 23
Volume: 1,898,724,224 1,839,404,288 1,916,161,920

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 gapped up today (bullish) on normal volume. Possibility of a Runaway Gap which usually signifies a continuation of the trend. Four types of price gaps exist – Common, Breakaway, Runaway, and Exhaustion. Gaps acts as support/resistance.
HANG SENG INDEX is currently 7.0% 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 20 periods.

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