Hong Kong: HANG SENG INDEX (.HSI) boost was primarily due to a boost in investor confidence involving a likely positive outcome of the ongoing trade dispute
Global markets reacted positively this week as both the United States and China made new progress in possibly putting an end to the now year-long trade war. The moves by both countries have managed to quell down fears of a prolonged trade war, resulting in a boost to some of China’s major economic indexes.
China’s Hang Seng Index had the most significant reaction this week with an upward movement of as much as 1.8 percent. The index closed at 27,159.06 points yesterday, its highest level since August 1.
A number of major stocks in Hong Kong also saw marginal increases this week. HSBC’s stock ended with a 3.1 percent increase, while Hang Seng Bank saw a 4.6 percent bump. China Construction Bank also saw its stock prices rise by 2.8 percent, while the Bank of China ended with a 3.7 percent gain.
The boost was primarily due to a boost in investor confidence involving a likely positive outcome of the ongoing trade dispute between two of the world’s largest economies. The improved outlook prompted some investors to quickly snap up key Chinese banking and property stocks sending indexes higher.
According to analysts, the recent development in the trade dispute has marginally increased the appetite of investors for banking stocks. These types of stocks typically have performances that track closely to economic activity, which essentially makes them react immediately to economic and political development.
While the recent developments had some positive effects on equities, it, unfortunately, did not manage to get a number of indexes into the green. The CSI 300, which tracks blue-chip stocks, still ended in the red this week, albeit with lower losses this time around. The CSI 300 closed with a 0.7 percent decline, ending at 3,930.1. Meanwhile, the Shanghai Composite Index closed 0.4 percent down, ending at 3,008.81.
Overall, the bias in prices is: Upwards.
The projected upper bound is: 27,928.11.
The projected lower bound is: 26,178.83.
The projected closing price is: 27,053.47.
A black body occurred (because prices closed lower than they opened).
During the past 10 bars, there have been 3 white candles and 7 black candles for a net of 4 black candles. During the past 50 bars, there have been 23 white candles and 27 black candles for a net of 4 black 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 86.2544. This is an overbought reading. However, a signal is not generated until the Oscillator crosses below 80 The last signal was a sell 13 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 62.04. 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 18 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 115.This is an overbought reading. However, a signal isn’t generated until the indicator crosses below 100. The last signal was a buy 21 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 17 period(s) ago.
Rex Takasugi – TD Profile
HANG SENG INDEX closed down -71.430 at 27,087.631. Volume was 25% below average (neutral) and Bollinger Bands were 16% narrower 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: 26,422.04 26,998.45 27,651.98
Volatility: 24 21 20
Volume: 1,789,091,840 1,607,307,520 1,788,724,480
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.
HANG SENG INDEX is currently 2.0% below its 200-period moving average and is in an upward trend. Volatility is high as compared to the average volatility over the last 10 periods. Our volume indicators reflect moderate flows of volume into .HSI (mildly bullish). Our trend forecasting oscillators are currently bullish on .HSI and have had this outlook for the last 3 periods.
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