Hong Kong: HANG SENG INDEX (.HSI) closes up for the first time in three days after US-China sign phase one deal

Hong Kong: HANG SENG INDEX (.HSI) closes up for the first time in three days after US-China sign phase one deal

Hong Kong: HANG SENG INDEX (.HSI) closes up for the first time in three days after US-China sign phase one deal

The Hang Seng Index rose 0.4 per cent to 28,883.04 at the close. Thirty-two out of the 50 members on the benchmark gained.

Sino Biopharmaceutical (1177 HK) was the best performer, climbing 4.8 per cent.

Semiconductor Manufacturing International Corporation (981 HK) gained 4.9 per cent to HK$15.1 on news circulating since earlier this week that Huawei’s semiconductor design subsidiary HiSilicon has asked SMIC to manufacture 14 nanometre chips, replacing Taiwan Semiconductor Manufacturing Company.

The signing of a partial trade agreement failed to boost stocks on the mainland, with the Shanghai Composite Index falling 0.5 per cent for a third straight day.

Investors including JPMorgan Asset Management said most of the optimism had been priced in before the signing and the two nations still have a lot of work to do to iron out thorny issues.

Telecom and internet stocks were among the biggest decliners.

Technical Indicators

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 27,564.23.

The projected upper bound is: 29,725.50.

The projected lower bound is: 28,094.01.

The projected closing price is: 28,909.75.


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 25 white candles and 25 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 67.1529. This is not an overbought or oversold reading. The last signal was a sell 1 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 66.66. 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 sell 9 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 101.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 3 period(s) ago.

Rex Takasugi – TD Profile

HANG SENG INDEX closed up 109.449 at 28,883.039. Volume was 7% above average (neutral) and Bollinger Bands were 20% narrower than normal.

Open     High      Low     Close     Volume___
Technical Outlook 
Short Term: Neutral
Intermediate Term: Bullish
Long Term: Bullish
Moving Averages: 10-period     50-period     200-period
Close: 28,578.36 27,430.49 27,537.20
Volatility: 15 19 19
Volume: 1,601,405,440 1,488,014,976 1,680,472,832

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 4.9% above its 200-period moving average and is in an upward 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 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 20 periods.

The following two tabs change content below.
HEFFX has become one of Asia’s leading financial services companies with interests in Publishing, Private Equity, Capital Markets, Mining, Retail, Transport and Agriculture that span every continent of the world. Our clearing partners have unprecedented experience in Equities, Options, Forex and Commodities brokering, banking, physical metals dealing, floor brokering and trading.