Hong Kong: HANG SENG INDEX (.HSI) concerns linked to Sino-American trade

Hong Kong: HANG SENG INDEX (.HSI)  concerns linked to Sino-American trade

Hong Kong: HANG SENG INDEX (.HSI) concerns linked to Sino-American trade

Hong Kong shares fell in choppy morning trading on Wednesday as concerns linked to Sino-American trade and a strengthened U.S. dollar weakened investor confidence.

The Hang Seng Index fell 0.5% to 26,985.84 by noon after changing direction at least four times. Insurer AIA Group dropped 2.4% and was the biggest drag on the gauge by points. Tencent Holdings fell 0.8% to HK$314.60 by the midday break after rising as high as HK$319.60 earlier. The company’s online music arm Tencent Music Entertainment Group on Tuesday filed an application to list in the U.S.

U.S.-China trade relations remained in focus after the U.S., Mexico and Canada signed a new trade agreement. A clause in that agreement discourages a free-trade deal between any of the three members and so-called “nonmarket” countries, fueling speculation it could be aimed at nations such as China. The monthslong Sino-American trade spat has so far resulted in punitive import tariffs by both nations and helped drive the benchmark Hang Seng Index into a technical bear market last month.

Overall, the bias in prices is: Downwards.

The projected upper bound is: 28,006.68.

The projected lower bound is: 26,129.25.

The projected closing price is: 27,067.96.

Candlesticks

A white body occurred (because prices closed higher 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 23 white candles and 27 black candles for a net of 4 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 24.2233. This is not an overbought or oversold reading. The last signal was a sell 3 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 44.38. 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 12 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 -46. This is not a topping or bottoming area. The last signal was a sell 3 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 buy 9 period(s) ago.

Rex Takasugi – TD Profile

HANG SENG INDEX closed down -35.121 at 27,091.260. Volume was 30% below average (neutral) and Bollinger Bands were 9% narrower than normal.

Open High Low Close Volume___
26,840.19927,270.16026,840.19927,091.2601,357,473,280

Technical Outlook
Short Term: Neutral
Intermediate Term: Bullish
Long Term: Bearish

Moving Averages: 10-period 50-period 200-period
Close: 27,496.14 27,744.63 29,759.33
Volatility: 23 22 22
Volume: 1,874,887,296 1,769,158,144 2,141,003,392

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 9.0% 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 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 6 periods.

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