Hong Kong: HANG SENG INDEX (.HSI) gains capped amid trade uncertainties

Hong Kong: HANG SENG INDEX (.HSI) gains capped amid trade uncertainties

Hong Kong: HANG SENG INDEX (.HSI) gains capped amid trade uncertainties

Hong Kong stocks ended higher on Tuesday after plumbing a four-month low in the previous session, but gains were capped as investor sentiment remained fragile amid broad uncertainties over trade and economic growth.

The Hang Seng index rose 0.4%, to 27,390.81 points, while the China Enterprises Index gained 0.1%, to 10,416.55 points.

Trade worries remained high on investors’ list of concerns.

U.S. President Donald Trump said on Monday that Washington was not ready to make a deal with Beijing but he expected one in the future, while at the same time pressing Japanese Prime Minister Shinzo Abe to even out a trade imbalance with the United States.

Markets showed scant reaction to a Reuters report that Alibaba is planning a $20 billion Hong Kong listing to boost investment war chest.

Overall, the bias in prices is: Downwards.

Note: this chart shows extraordinary price action to the downside.

By the way, prices are vulnerable to a correction towards 28,344.00.

The projected upper bound is: 28,171.35.

The projected lower bound is: 26,549.07.

The projected closing price is: 27,360.21.

Candlesticks

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 26 white candles and 24 black candles for a net of 2 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 27.6171. This is not an overbought or oversold reading. The last signal was a buy 0 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 30.78. This is not a topping or bottoming area. However, the RSI just crossed above 30 from a bottoming formation. This is a bullish sign. A buy or sell signal is generated when the RSI moves out of an overbought/oversold area. The last signal was a buy 0 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 -88. This is not a topping or bottoming area. The last signal was a buy 0 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 25 period(s) ago.

Rex Takasugi – TD Profile

HANG SENG INDEX closed up 102.721 at 27,390.811. Volume was 61% above average (neutral) and Bollinger Bands were 91% wider than normal.

Open High Low Close Volume___
27,274.83027,490.55127,230.09027,390.8113,137,847,040

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

Moving Averages: 10-period 50-period 200-period
Close: 27,694.10 29,079.61 27,478.64
Volatility: 13 18 22
Volume: 2,158,693,632 1,994,069,120 1,858,926,848

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 0.3% 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 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 14 periods.

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