Home Asia Street demonstrations reduce gains for Hong Kong: HANG SENG INDEX (.HSI)

Street demonstrations reduce gains for Hong Kong: HANG SENG INDEX (.HSI)

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Street demonstrations reduce gains for Hong Kong: HANG SENG INDEX (.HSI)

Hong Kong stocks emerged from a topsy-turvy week still in the black — but with considerable worries weighing on sentiment.

After surging 2.3% at the start of the week amid global optimism over monetary policy easing, the Hang Seng Index slumped on Wednesday as protests rocked the city’s financial district and interbank borrowing costs spiked. The gauge posted its best weekly gain since early May, bolstered by inflows from Shanghai and Shenzhen, but stocks on the mainland did better.

Hong Kong sank 1.7 percent as the city was rocked by violent protests by tens of thousands of people against government plans for a controversial extradition law. The squeeze has driven up the cost of shorting the Hong Kong dollar, which also contributed to the one-day jump.

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 27,942.68.

The projected upper bound is: 27,911.21.

The projected lower bound is: 26,259.21.

The projected closing price is: 27,085.21.

Candlesticks

A black body occurred (because prices closed lower than they opened).
During the past 10 bars, there have been 4 white candles and 6 black candles for a net of 2 black candles. During the past 50 bars, there have been 25 white candles and 25 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 40.6247. This is not an overbought or oversold reading. The last signal was a sell 2 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 39.18. 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 5 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 -8. This is not a topping or bottoming area. The last signal was a sell 2 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 5 period(s) ago.

Rex Takasugi – TD Profile

HANG SENG INDEX closed down -176.361 at 27,118.350. Volume was 6% above average (neutral) and Bollinger Bands were 32% narrower than normal.

Open High Low Close Volume___
27,180.74027,275.88127,051.75027,118.3502,093,900,544

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

Moving Averages: 10-period 50-period 200-period
Close: 27,150.67 28,643.84 27,437.33
Volatility: 19 18 22
Volume: 1,898,018,048 2,050,173,312 1,874,418,944

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 1.2% below its 200-period moving average and is in an downward 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 bearish on .HSI and have had this outlook for the last 26 periods.

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