Hong Kong: HANG SENG INDEX (.HSI) worries about a slowdown in global growth

Hong Kong: HANG SENG INDEX (.HSI) worries about a slowdown in global growth

Hong Kong: HANG SENG INDEX (.HSI) worries about a slowdown in global growth

Headline shares of the Hong Kong financial market were lower on Tuesday, 11 December 2018, as worries about a slowdown in global growth along with trade war concerns between the world’s two largest economies kept investors on the back foot. Meanwhile, fresh Brexit uncertainty also dampened investor sentiments. In afternoon trades, the Hang Seng Index fell 29.34 points or 0.11% to 25,723.04. The Hang Seng China Enterprises Index dropped 49.36 points or 0.5% to 10,223.84.

A raft of negative factors cast a shadow on already rattled markets, including soft trade data from China and comments from White House trade adviser Peter Navarro on imposing tariffs on more Chinese imports. China reported weaker-than-expected November exports and imports on Saturday, reflecting slower global and domestic demand, with exports only rising 5.4% from a year earlier, well short of the market expectation.

Overall, the bias in prices is: Downwards

The projected upper bound is: 26,903.10.

The projected lower bound is: 24,559.56.

The projected closing price is: 25,731.33.

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 23 white candles and 27 black candles for a net of 4 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 10.0503. This is an oversold reading. However, a signal is not generated until the Oscillator crosses above 20 The last signal was a sell 3 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 43.81. 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 41 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 -108.This is an oversold reading. However, a signal isn’t generated until the indicator crosses above -100. 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 2 period(s) ago.

Rex Takasugi – TD Profile

HANG SENG INDEX closed up 19.289 at 25,771.670. Volume was 33% below average (neutral) and Bollinger Bands were 18% narrower than normal.

Open High Low Close Volume___
25,623.40025,861.73025,623.40025,771.6701,227,767,552

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

Moving Averages: 10-period 50-period 200-period
Close: 26,464.67 25,972.01 28,581.39
Volatility: 26 29 23
Volume: 1,873,039,872 1,844,848,000 1,922,301,952

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 9.8% 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 18 periods.

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