Hong Kong: HANG SENG INDEX (.HSI) End On Steady Note Amid Trade Optimism

Hong Kong: HANG SENG INDEX (.HSI) End On Steady Note Amid Trade Optimism

Hong Kong: HANG SENG INDEX (.HSI) End On Steady Note Amid Trade Optimism

Asian stocks reversed early losses to end Thursday’s session on a steady note following a Reuters report that the US and China were outlining agreements on the stickiest trade issues.

Dovish signals from the US Federal Reserve also lent some support to markets.

Chinese shares gave up early gains to end modestly lower after a spokesman for China’s Ministry of Foreign Affairs said the country would not use the yuan’s exchange rate as a bargaining chip to deal with trade dispute.

Investors also bet that Beijing will not resort to aggressive interest rate cuts to spur the slowing economy, despite stronger yuan and cooling inflation.

The benchmark Shanghai Composite index dropped 9.42 points or 0.34% to 2,751.80 while Hong Kong’s Hang Seng index rose 0.41% to 28,629.92.

US stocks edged higher overnight as minutes of the latest Federal Reserve meeting indicated a patient approach to raising interest rates.

The Dow Jones Industrial Average and the S&P 500 rose around 0.2% while the tech-heavy Nasdaq Composite inched up marginally.

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 27,372.31.

The projected upper bound is: 29,533.33.

The projected lower bound is: 27,798.92.

The projected closing price is: 28,666.13.

Candlesticks

A white body occurred (because prices closed higher than they opened).
During the past 10 bars, there have been 8 white candles and 2 black candles for a net of 6 white candles. During the past 50 bars, there have been 31 white candles and 19 black candles for a net of 12 white 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 77.9021. This is not an overbought or oversold reading. 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 67.87. 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 4 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 125.This is an overbought reading. However, a signal isn’t generated until the indicator crosses below 100. The last signal was a sell 2 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 sell 3 period(s) ago.

Rex Takasugi – TD Profile

HANG SENG INDEX closed up 115.869 at 28,629.920. Volume was 7% above average (neutral) and Bollinger Bands were 13% narrower than normal.

Open High Low Close Volume___
28,450.00028,759.35028,364.85028,629.9201,870,639,488

Technical Outlook
Short Term: Overbought
Intermediate Term: Bullish
Long Term: Bullish

Moving Averages: 10-period 50-period 200-period
Close: 28,281.11 26,811.22 27,699.07
Volatility: 18 21 23
Volume: 1,700,677,248 1,681,728,000 1,828,126,208

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 3.4% above 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 25 periods. The security price has set a new 14-period high while our momentum oscillator has not. This is a bearish divergence.

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