Hong Kong: HANG SENG INDEX (.HSI) gain despite fresh tariff threats
China stocks led Asian markets higher Tuesday, despite fresh threats from President Donald Trump to raise tariffs on imports from that country.
Trump on Monday told reporters that the U.S. would raise tariffs against China if President Xi Jinping did not attend the G-20 meeting later this month in Japan. There have been no indications that Xi is planning on skipping the summit, and he is expected to meet with Trump there. Trump also predicted that tariffs would drive China to make a trade deal.
“The China deal is going to work out. You know why? Because of tariffs,” Trump said.
The Shanghai Composite SHCOMP, +2.58% surged 2.6% and the smaller-cap Shenzhen Composite 399106, +3.71% soared 3.8%, while Hong Kong’s Hang Seng Index HSI, +0.76% gained 0.8%. China stock gains centered on infrastructure names, after Beijing reportedly asked local governments to fund new big projects. Shares of China Railway Construction Corp. 1186, +7.23% surged nearly 8%.
Overall, the bias in prices is: Sideways.
Note: this chart shows extraordinary price action to the downside.
By the way, prices are vulnerable to a correction towards 27,956.94.
The projected upper bound is: 28,579.88.
The projected lower bound is: 26,969.44.
The projected closing price is: 27,774.66.
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 26 white candles and 24 black candles for a net of 2 white candles.
Three white candles occurred in the last three days. Although these candles were not big enough to create three white soldiers, the steady upward pattern is bullish.
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 89.0024. This is an overbought reading. However, a signal is not generated until the Oscillator crosses below 80 The last signal was a buy 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 49.60. 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 2 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 142.This is an overbought reading. However, a signal isn’t generated until the indicator crosses below 100. The last signal was a buy 3 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 2 period(s) ago.
Rex Takasugi – TD Profile
HANG SENG INDEX closed up 210.699 at 27,789.340. Volume was 5% below average (neutral) and Bollinger Bands were 8% narrower than normal.
Open High Low Close Volume___
Short Term: Neutral
Intermediate Term: Bearish
Long Term: Bullish
Moving Averages: 10-period 50-period 200-period
Close: 27,152.66 28,730.81 27,436.91
Volatility: 16 18 22
Volume: 2,044,444,032 2,023,780,864 1,873,725,440
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 1.3% above its 200-period moving average and is in an downward trend. Volatility is low 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 bearish on .HSI and have had this outlook for the last 23 periods.