Hong Kong: HANG SENG INDEX (.HSI) halted a five-day losing streak
Hong Kong stocks halted a five-day losing streak on Wednesday as investors awaited a U.S. Congressional testimony by the chairman of the Federal Reserve.
The Hang Seng Index closed 0.3% higher at 28,204.69. Social media major Tencent Holdings advanced 1.7% and energy producer CNOOC added 1.4% to rank among the day’s biggest contributors to the gauge’s gains by points. Online entertainment services company Maoyan Entertainment advanced 10.9% after announcing a strategic alliance with Tencent to improve their cooperation. Geely Automobile Holdings added 2.6% after tumbling on Tuesday in the wake of a profit warning.
Sunny Optical Technology Group advanced 1.7% after U.S. Commerce Secretary Wilbur Ross reportedly said the ban on American supplies to Chinese telecommunications major Huawei Technologies will be relaxed as long as national security is not at risk. Huawei is one of Sunny Optical’s clients.
Fed Chairman Jerome Powell is scheduled to share his views with lawmakers later on Wednesday. The testimony is being closely watched by investors seeking more clues on his monetary policy outlook.
American and Chinese government officials involved in trade negotiations held a “constructive” discussion by phone on Tuesday, according to media reports. The call represents the first conversation between the two sides since U.S. President Donald Trump and Chinese President Xi Jinping agreed to resume talks at the Group of 20 nations summit in Japan last month. While Trump pushed for China to make large-scale purchases of U.S. agricultural products, Xi did not make any specific commitments, the South China Morning Post reported late on Tuesday.
The relaxation of the U.S. stance toward Huawei has aided mobile parts makers such as Sunny Optical and helped the Hang Seng Index halt its recent declines, said Ricky Huang, an analyst at Luk Fook Financial Services.
Still, the Hang Seng Index will “probably have a bit of a rebound today and resume weakness later,” Huang said. A trade deal was unlikely to be reached by the end of this year as China is now “more reluctant to concede” in the discussions, he added.
Overall, the bias in prices is: Sideways.
The projected upper bound is: 29,062.10.
The projected lower bound is: 27,293.47.
The projected closing price is: 28,177.79.
A black body occurred (because prices closed lower than they opened).
During the past 10 bars, there have been 3 white candles and 7 black candles for a net of 4 black candles. During the past 50 bars, there have been 23 white candles and 27 black candles for a net of 4 black candles.
Three black candles occurred in the last three days. Although these candles were not big enough to create three black crows, the steady downward pattern is bearish.
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 11.1350. This is an oversold reading. However, a signal is not generated until the Oscillator crosses above 20 The last signal was a sell 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 49.92. 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 22 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 -92. This is not a topping or bottoming area. The last signal was a buy 0 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 1 period(s) ago.
Rex Takasugi – TD Profile
HANG SENG INDEX closed up 88.410 at 28,204.689. Volume was 46% below average (neutral) and Bollinger Bands were 15% wider than normal.
Open High Low Close Volume___
Short Term: Oversold
Intermediate Term: Bullish
Long Term: Bullish
Moving Averages: 10-period 50-period 200-period
Close: 28,534.00 28,131.43 27,498.55
Volatility: 15 20 22
Volume: 1,366,747,648 1,873,831,424 1,853,333,888
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 2.6% above its 200-period moving average and is in an upward 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 bullish on .HSI and have had this outlook for the last 14 periods.