Jump in virus cases sends Hong Kong: HANG SENG INDEX (.HSI) into the red

Jump in virus cases sends Hong Kong: HANG SENG INDEX (.HSI) into the red

Jump in virus cases sends Hong Kong: HANG SENG INDEX (.HSI) into the red

Hong Kong stocks ended the morning session down on Thursday, after mainland authorities reported a dramatic rise in the number of coronavirus deaths and infections in the mainland.

The Hang Seng Index dropped 0.1 percent, to 27,784 by the break.

On the mainland, the Shanghai Composite Index lost 0.5 percent, to 2,911 while the Shenzhen Composite Index edged down 0.7 percent, or 0.86 points, to 1,773.

Tokyo was up 0.1 percent after opening 0.1 percent lower. Elsewhere, Sydney was up 0.3 percent, Seoul put on 0.6 percent and Taipei rose 0.4 percent.

The jump in China coronavirus numbers “has initially hit like a ton of bricks given this is one of the market’s biggest fears”, Stephen Innes, chief market strategist at AxiCorp, wrote.

But he added that despite the “gnarly” headlines, the rise could be the result of a testing backlog being cleared over the weekend in Hubei province, where the virus emerged late last year.

Technical Indicators

Overall, the bias in prices is: Upwards.

The projected upper bound is: 28,708.16.

The projected lower bound is: 26,785.29.

The projected closing price is: 27,746.72.

Candlesticks

A black body occurred (because prices closed lower than they opened).
During the past 10 bars, there have been 7 white candles and 3 black candles for a net of 4 white candles. During the past 50 bars, there have been 26 white candles and 24 black candles for a net of 2 white 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 86.3298. This is an overbought reading. However, a signal is not generated until the Oscillator crosses below 80 The last signal was a buy 6 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 52.04. 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 sell 27 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 85. This is not a topping or bottoming area. The last signal was a buy 7 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 buy 2 period(s) ago.

Rex Takasugi – TD Profile

HANG SENG INDEX closed down -93.660 at 27,730.000. Volume was 3% above average (neutral) and Bollinger Bands were 66% wider than normal.

Open     High      Low     Close     Volume___
27,953.65027,953.65027,695.60027,730.0001,617,010,176
Technical Outlook 
Short Term: Neutral
Intermediate Term: Bearish
Long Term: Bullish
Moving Averages: 10-period     50-period     200-period
Close: 27,140.92 27,620.31 27,334.65
Volatility: 18 22 20
Volume: 1,990,316,928 1,622,462,592 1,664,651,136

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 1.4% 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 volume flowing into and out of .HSI at a relatively equal pace (neutral). Our trend forecasting oscillators are currently bearish on .HSI and have had this outlook for the last 11 periods.

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