Hong Kong: HANG SENG INDEX (.HSI) falls sharply as Asia reels after Trump comments
Hong Kong stocks tumbled more than 1 percent on Wednesday morning after Donald Trump threw a spanner in the China trade talks by suggesting an agreement could be delayed until after next year’s elections.
The Hang Seng index fell 1.2 percent, to 26,077 by the break.
On the mainland, the Shanghai Composite Index fell 0.3 percent, to 2,874 while the Shenzhen Composite Index edged up 0.1 percent, to 1,606.
Tokyo, Sydney and Seoul all lost more than 1 percent, while Taipei shed 0.4 percent, Singapore lost 0.5 percent and Manila slipped 0.8 percent.
“Equity markets have had a bit of a reality check as President Trump pours cold water over an imminent trade deal with China,” said Rodrigo Catril, senior strategist at National Australia Bank.
“So tariff man is back and he has brought market volatility back to life, at least in the equity and bond market,” the strategist said.
The uncertainty sent investors running for safe-haven assets with the yen holding Tuesday’s gains against the US dollar, while gold pushed towards US$1,500 and its highest levels since 2013.
Higher-yielding, riskier currencies were down against the greenback with the yuan, South Korean won and Australian dollar among those suffering a sell-off.
Overall, the bias in prices is: Downwards.
The projected upper bound is: 26,832.55.
The projected lower bound is: 25,286.18.
The projected closing price is: 26,059.36.
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 26 white candles and 24 black candles for a net of 2 white candles.
A spinning top occurred (a spinning top is a candle with a small real body). Spinning tops identify a session in which there is little price action (as defined by the difference between the open and the close). During a rally or near new highs, a spinning top can be a sign that prices are losing momentum and the bulls may be in trouble.
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 18.7091. This is an oversold reading. However, a signal is not generated until the Oscillator crosses above 20 The last signal was a buy 11 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 38.96. 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 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 -144.This is an oversold reading. However, a signal isn’t generated until the indicator crosses above -100. The last signal was a buy 12 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 sell 3 period(s) ago.
Rex Takasugi – TD Profile
HANG SENG INDEX closed down -328.740 at 26,062.561. Volume was 9% below average (neutral) and Bollinger Bands were 19% narrower than normal.
Open High Low Close Volume___
Short Term: Oversold
Intermediate Term: Bearish
Long Term: Bearish
Moving Averages: 10-period 50-period 200-period
Close: 26,606.17 26,627.90 27,663.14
Volatility: 19 18 19
Volume: 1,551,030,016 1,519,834,496 1,755,600,896
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 5.8% below its 200-period moving average and is in an downward trend. Volatility is high as compared to the average volatility over the last 10 periods. Our volume indicators reflect moderate flows of volume out of .HSI (mildly bearish). Our trend forecasting oscillators are currently bearish on .HSI and have had this outlook for the last 9 periods.