Hong Kong: HANG SENG INDEX (.HSI) gives up early gains despite Wall Street rally
Hong Kong shares were flat at the midday break after an early boost as a strong US jobs report was offset by a weekend report which showed Chinese exports fell sharply.
The Hang Seng index was just over six points up, 26,504 after the first session.
On the mainland, the Shanghai Composite Index slipped into the red, down 0.1 percent, to 2,908 while the Shenzhen Composite Index was flat at 1,640.
Other Asian markets mostly rose as investors tracked a rally on Wall Street that was fuelled by a forecast-busting US jobs report.
Tokyo rose 0.5 percent by the break. Singapore edged 0.1 percent higher, while Sydney added 0.3 percent.
Seoul put on 0.4 percent and Taipei climbed 0.5 percent. Wellington and Manila slipped.
Dealers were also keeping abreast of progress in the China-US trade talks, most bets on a deal eventually being struck.
White House economic aide Larry Kudlow told CNBC an agreement “is still close” and that the two sides talk almost daily, while Treasury Secretary also said the discussions were on track.
However, with still nothing concrete being announced, there are worries that the US will enact a fresh round of tariffs in China on December 15. Beijing has called for the levies to be removed as part of any deal and the fear is that a new batch of measures could derail the talks.
On currency markets the pound was holding gains with just days ahead of the UK general election, which is expected to see Prime Minister Boris Johnson’s Conservatives win a big enough majority to push through his Brexit deal.
Overall, the bias in prices is: Sideways.
By the way, prices are vulnerable to a correction towards 26,724.44.
The projected upper bound is: 27,273.94.
The projected lower bound is: 25,733.63.
The projected closing price is: 26,503.79.
A black body occurred (because prices closed lower 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 27 white candles and 23 black candles for a net of 4 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 65.9051. This is not an overbought or oversold reading. The last signal was a buy 2 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 47.25. 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 21 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 -19. This is not a topping or bottoming area. The last signal was a buy 1 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 6 period(s) ago.
Rex Takasugi – TD Profile
HANG SENG INDEX closed down -3.639 at 26,494.730. Volume was 21% below average (neutral) and Bollinger Bands were 45% narrower than normal.
Open High Low Close Volume___
Short Term: Neutral
Intermediate Term: Bearish
Long Term: Bearish
Moving Averages: 10-period 50-period 200-period
Close: 26,521.69 26,646.73 27,636.81
Volatility: 16 18 19
Volume: 1,537,458,688 1,492,271,104 1,750,777,600
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 4.1% below 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 12 periods.