HANG SENG INDEX (.HSI) Closes Slightly Higher after Trump-Kim Summit

HANG SENG INDEX (.HSI) Closes Slightly Higher after Trump-Kim Summit

HANG SENG INDEX (.HSI) Closes Slightly Higher after Trump-Kim Summit

Hong Kong stocks ended higher on Tuesday, after U.S. President Donald Trump and North Korean leader Kim Jong Un signed a ‘comprehensive’ deal aimed at the denuclearisation of the Korean peninsula, while Washington committed to provide security guarantees for its old enemy.

The Hang Seng index closed up 0.1 percent at 31,103.06 points, while the China Enterprises Index ended 0.3 percent higher at 12,206.57 points.  U.S. President Donald Trump and North Korean leader Kim Jong Un pledged on Tuesday to work towards complete denuclearisation of the Korean peninsula. But a joint statement signed at the end of their historic summit in Singapore gave few details on how either goal would be achieved.

Overall, the bias in prices is: Upwards.

By the way, prices are vulnerable to a correction towards 30,785.60.

The projected upper bound is: 32,107.57.

The projected lower bound is: 30,111.04.

The projected closing price is: 31,109.30.

Candlesticks

A white body occurred (because prices closed higher 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 24 white candles and 26 black candles for a net of 2 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 30.5786. 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 53.90. 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 78 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 59. 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 up 39.361 at 31,103.061. Volume was 36% below average (neutral) and Bollinger Bands were 44% narrower than normal.

Open High Low Close Volume___
31,029.85031,242.85930,944.97131,103.0611,421,641,216

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

Moving Averages: 10-period 50-period 200-period
Close: 30,900.64 30,608.27 29,864.25
Volatility: 20 21 20
Volume: 2,132,164,352 1,881,348,224 2,148,297,216

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 4.1% above 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 4 periods.

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