Hong Kong: HANG SENG INDEX (.HSI) Violence Escalates

Hong Kong: HANG SENG INDEX (.HSI) Violence Escalates

Hong Kong: HANG SENG INDEX (.HSI) Violence Escalates

Protests in Hong Kong drove the Hang Seng Index down 4.79% last week with a violent turn Monday, heightening an already volatile situation days after a group of pro-democracy lawmakers was arrested in the city.

In one incident, a Hong Kong protester is in critical condition after being shot by police. In an unrelated incident, police said “rioters” poured “flammable liquid” on a man and set him on fire.

The latest mass demonstrations come after three pro-democracy lawmakers were arrested on November 9 and reports indicated that other were warned they soon could be taken into custody.

Technical Indicators

Overall, the bias in prices is: Sideways.

The projected upper bound is: 27,413.01.

The projected lower bound is: 25,955.79.

The projected closing price is: 26,684.40.

Candlesticks

A white body occurred (because prices closed higher 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 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 19.3383. This is an oversold reading. However, a signal is not generated until the Oscillator crosses above 20 The last signal was a sell 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 47.55. 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 sell 6 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 -73. This is not a topping or bottoming area. The last signal was a buy 0 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 3 period(s) ago.

Rex Takasugi – TD Profile

HANG SENG INDEX closed up 354.430 at 26,681.090. Volume was 11% below average (neutral) and Bollinger Bands were 11% narrower than normal.

Open     High      Low     Close     Volume___
26,442.39126,702.16026,406.35026,681.0901,425,323,136
Technical Outlook 
Short Term: Oversold
Intermediate Term: Bullish
Long Term: Bearish
Moving Averages: 10-period     50-period     200-period
Close: 27,076.51 26,656.02 27,739.79
Volatility: 22 17 19
Volume: 1,499,728,896 1,550,540,416 1,767,204,736

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 3.8% below its 200-period moving average and is in an upward trend. Volatility is extremely high when compared to the average volatility over the last 10 periods. There is a good possibility that volatility will decrease and prices will stabilize in the near term. 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 12 periods.

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