Hang Seng China Enterprises Index – Low Range Close, Momentum Rebound Buy, High Breakout Continuation
Here are the Latest Traditional Investment News.
The HSCEI retreated -2% from Tuesday’s rally, closing near its lows and remaining above 11,683 – 11,729 daily symmetry support. The index regains its bullish footing on a 60 min close > 12,330.
Daily Trading Signals
A number of daily trading signals were generated for 6 Aug:
The Low Range Close signal is triggered when the preceding trading day closes in the bottom of its trading range. The signal implies a strong probability that the next day’s trading will trade beneath the previous day’s low.
The 2 period ROC Bearish Indicator should be used more as a guideline, as it is a signal prone to whipsaws. The ROC Bearish indicator works best in choppy markets or after a compressed trend move has occurred. The method is based on George Taylor’s trading technique. Taylor observed there was a natural rhythm to the markets and that every 2 or 3 days (or more accurately every 2 or 3 periods) would cycle between buy and sell days.
Based on the price action over the past three days, this signal quantifies that a sell signal triggered on the close of the previous day. The bearish indication is best used in conjunction with reversal signals triggered for the current day’s trading.
The Momentum Reversal Buy Signal is a stronger reversal indication than the Low Continuation & Reversal signal. This momentum reversal signals typically fire following a trend move the previous day that has traveled too far, too fast and is accompanied by an extreme short term Relative Strength Index that indicate a very high probability for a reversal. While the Low Continuation Reversal Signal points to a good likelihood for a reversal move sometime during the trading day, the Momentum Rebound Buy Signal use the 1st hour high as a specific price level that needs to be exceeded to trigger the Momentum Rebound Buy Signal.
Exceeding the high reached in 1st hour of trading triggers the Buy signal.
The High Breakout Continuation Setup Signal requires that the preceding trading day’s high needs to be exceeded to confirm a change in trend direction. The signal seeks to take advantage of a pullback in the immediate daily trend.
Today’s daily pivot is 12,063, and the weekly pivot is 12,105. Intra-day price action above the daily pivot is bullish.
The HSCEI normal trading range is projected to be between 11,750 – 12,187.
The HSCEI extended trading range is projected to be between 11,583 – 13,354.
Specific price levels and projections are discussed on the charts below.
Short term 60 Min
The 60 min charts are currently bearish, but turn bullish above 12,330. A 60 min close
Daily
After nearly reaching extended weekly & monthly Fib 1.618 upside projections with last week’s 12,458 high. The HSCEI bounced at daily support @ 11,732. A daily close
Weekly
The weekly oscillator crossed bullish on Friday 17 Jul and is now bullish overbought. Weekly symmetry support is 10,088 – 10,402. A weekly close
Hourly, Daily, Weekly charts with additional Fib support and projection levels are posted below.
If a traditional investment – such as Stocks, Bonds, ETFs, Proprieties, Precious Metals – is not for you then you should check our Foreign Exchange and High Yield Investment categories.
