Hong Kong: HANG SENG INDEX (.HSI) China calls off planned trade talks with Washington
Hong Kong stocks tumbled on Monday after China cancelled trade talks with the US and accused it of “bullying” trade tactics, ending a four-day winning streak.
The benchmark Hang Seng Index fell 1.6 per cent, or 454.19 points, to close at 27,499.39. The Hang Seng China Enterprises Index declined 1.8 per cent, or 199.61 points, to 10,827.52.
China called off a planned visit to Washington by vice-premier Liu He on Monday, as reported by the Post, in a move that quashed hopes for resumed negotiations between the world’s two largest economies.
Stock markets in Shenzhen and Shanghai were closed for a public holiday on Monday and will reopen Tuesday. Markets in Hong Kong will be closed on Tuesday for a public holiday and reopen on Wednesday.
Overall, the bias in prices is: Downwards.
By the way, prices are vulnerable to a correction towards 28,241.73.
The projected upper bound is: 28,382.11.
The projected lower bound is: 26,575.07.
The projected closing price is: 27,478.59.
A black body occurred (because prices closed lower than they opened).
During the past 10 bars, there have been 5 white candles and 5 black candles. During the past 50 bars, there have been 22 white candles and 28 black candles for a net of 6 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 82.5783. This is an overbought reading. However, a signal is not generated until the Oscillator crosses below 80 The last signal was a sell 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 50.15. 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 7 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 96. This is not a topping or bottoming area. The last signal was a sell 0 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 4 period(s) ago.
Rex Takasugi – TD Profile
HANG SENG INDEX closed down -454.189 at 27,499.391. Volume was 19% below average (neutral) and Bollinger Bands were 18% 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: 27,142.40 27,809.67 29,789.56
Volatility: 24 21 22
Volume: 1,919,867,776 1,773,751,168 2,144,735,104
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 7.7% 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 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 1 periods.