Hong Kong: HANG SENG INDEX (.HSI) amid hopes that progress can be made at U.S.-China trade talks later this week

Hong Kong: HANG SENG INDEX (.HSI) amid hopes that progress can be made at U.S.-China trade talks later this week

Hong Kong: HANG SENG INDEX (.HSI) amid hopes that progress can be made at U.S.-China trade talks later this week

Asian markets gained in early trading Tuesday amid hopes that progress can be made at U.S.-China trade talks later this week.

China confirmed that its top trade negotiator, Vice Premier Liu He, would lead its delegation in Washington for high-level talks starting Thursday. China has reportedly taken some issues that the U.S. views as points of contention off the negotiating table, however.

President Donald Trump on Monday said there was a “good possibility” of reaching a deal with China to end the yearlong tariff war, though he added he would not be satisfied with a partial deal.

Meanwhile, the U.S. blacklisted a group of Chinese artificial-intelligence companies that it said was making technology that the Chinese government was using to repress its Muslim minority.

The U.S. on Monday also signed a limited trade deal with Japan, giving U.S. farmers benefits they lost when Trump pulled the U.S. out of the Trans-Pacific Partnership in 2017.

Shares of Hong Kong Exchanges and Clearing Ltd. 388, +2.30%   jumped after the company announced it was dropping its $37 billion bid to buy the London Stock Exchange, after the two companies’ boards were “unable to engage.” The LSE had previously rejected HKEX’s bid, which turned hostile.

Technical Indicators

Overall, the bias in prices is: Downwards.

By the way, prices are vulnerable to a correction towards 26,550.95.

The projected upper bound is: 26,708.35.

The projected lower bound is: 24,978.28.

The projected closing price is: 25,843.31.

Candlesticks

A white body occurred (because prices closed higher 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 19 white candles and 31 black candles for a net of 12 black candles.

A long upper shadow occurred. This is typically a bearish signal (particularly when it occurs near a high price level, at resistance level, or when the security is overbought).

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 52.1478. This is not an overbought or oversold reading. The last signal was a buy 4 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 40.68. 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 34 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 -66. This is not a topping or bottoming area. The last signal was a buy 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 9 period(s) ago.

Rex Takasugi – TD Profile

HANG SENG INDEX closed up 72.371 at 25,893.400. Volume was 9% above average (neutral) and Bollinger Bands were 17% narrower than normal.

Open     High      Low     Close     Volume___
25,848.73026,180.02925,761.50025,893.4001,779,110,400
Technical Outlook 
Short Term: Neutral
Intermediate Term: Bearish
Long Term: Bearish
Moving Averages: 10-period     50-period     200-period
Close: 26,040.52 26,311.48 27,653.07
Volatility: 12 21 19
Volume: 1,442,675,200 1,732,765,312 1,778,020,480

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 6.4% below its 200-period moving average and is in an downward trend. Volatility is extremely low when compared to the average volatility over the last 10 periods. There is a good possibility that there will be an increase in volatility along with sharp price fluctuations in the near future. 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 1 periods.

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