Hong Kong: HANG SENG INDEX (.HSI) bets of US/China trade progress
Australian shares are set to open higher on hopes that the US and China are moving to resolve their trade dispute. ASX futures were up 43 points. US markets will be closed Monday for a holiday. The Australian dollar slipped 0.4 per cent.
Wall Street advanced on Friday with all three benchmarks rising at least 1 per cent on reports that progress is being made between US and Chinese trade negotiators.
“The shift of the US Administration towards a more constructive tone vis-à-vis China is encouraging, but we continue to believe that both parties remain far from striking a comprehensive deal,” Oxford Economics said in a note. “Still, considering recent developments, we intend to revise our baseline assumptions by removing the previously anticipated escalation of tariffs from 10% to 25% at the end of Q1.”
Overall, the bias in prices is: Upwards.
Note: this chart shows extraordinary price action to the upside.
By the way, prices are vulnerable to a correction towards 26,485.29.
The projected upper bound is: 28,073.03.
The projected lower bound is: 26,147.38.
The projected closing price is: 27,110.21.
A white body occurred (because prices closed higher than they opened).
During the past 10 bars, there have been 6 white candles and 4 black candles for a net of 2 white candles. During the past 50 bars, there have been 27 white candles and 23 black candles for a net of 4 white candles.
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.
One method of interpreting the Stochastic Oscillator is looking for overbought areas (above 80) and oversold areas (below 20). The Stochastic Oscillator is 88.3826. This is an overbought reading. However, a signal is not generated until the Oscillator crosses below 80 The last signal was a buy 17 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 62.63. 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 66 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 107.This is an overbought reading. However, a signal isn’t generated until the indicator crosses below 100. The last signal was a sell 1 period(s) ago.
The Moving Average Convergence/Divergence indicator (MACD) gives signals when it crosses its 9 period signal line. The last signal was a buy 8 period(s) ago.
Rex Takasugi – TD Profile
HANG SENG INDEX closed up 335.180 at 27,090.811. Volume was 3% below average (neutral) and Bollinger Bands were 9% wider than normal.
Open High Low Close Volume___
Short Term: Overbought
Intermediate Term: Bullish
Long Term: Bearish
Moving Averages: 10-period 50-period 200-period
Close: 26,523.93 26,126.42 27,958.74
Volatility: 20 23 23
Volume: 1,851,714,816 1,622,136,320 1,851,256,704
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.
HANG SENG INDEX is currently 3.1% below 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.