Hong Kong: HANG SENG INDEX (.HSI) higher as investors cheered signs of progress towards a trade deal between the world’s two largest economies

Hong Kong: HANG SENG INDEX (.HSI) higher as investors cheered signs of progress towards a trade deal between the world’s two largest economies

Hong Kong: HANG SENG INDEX (.HSI) higher as investors cheered signs of progress towards a trade deal between the world’s two largest economies

Hong Kong stocks closed higher on Thursday as investors cheered signs of progress towards a trade deal between the world’s two largest economies.

The Hang Seng index rose 0.4%, to 26,041.93, while the China Enterprises Index gained 0.4%, to 10,212.27.

China is in close communication with the United States and is preparing to make progress at trade talks in October, the commerce ministry in Beijing said on Thursday.

On Wednesday, U.S. President Donald Trump said a deal to end a trade war with China could happen sooner than people think and that the Chinese were making big agricultural purchases from the United States.

However, gains were capped by doubts on whether the latest the round of talks could yield a deal to the nearly 15-month long U.S.-China trade tussle and lingering worries over the political crisis on the island city.

Hong Kong leader Carrie Lam will hold her first talks with the public on Thursday in a bid to resolve a political crisis that has fuelled nearly four months of sometimes violent protests and plunged the Chinese-run city into chaos.

Technical Indicators

Overall, the bias in prices is: Downwards.

The projected upper bound is: 26,878.06.

The projected lower bound is: 25,109.01.

The projected closing price is: 25,993.54.

Candlesticks

A black body occurred (because prices closed lower than they opened).
During the past 10 bars, there have been 1 white candles and 9 black candles for a net of 8 black candles. During the past 50 bars, there have been 18 white candles and 32 black candles for a net of 14 black candles.

A long lower shadow occurred. This is typically a bullish signal (particularly when it occurs near a low price level, at a support level, or when the security is oversold).

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.

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 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 10.9540. This is an oversold reading. However, a signal is not generated until the Oscillator crosses above 20 The last signal was a sell 8 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 41.37. 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 28 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 -130.This is an oversold reading. However, a signal isn’t generated until the indicator crosses above -100. The last signal was a sell 8 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 3 period(s) ago.

Rex Takasugi – TD Profile

HANG SENG INDEX closed up 96.580 at 26,041.930. Volume was 0% above average (neutral) and Bollinger Bands were 15% narrower than normal.

Open     High      Low     Close     Volume___
26,075.15026,099.64125,917.58026,041.9301,700,238,592
Technical Outlook 
Short Term: Oversold
Intermediate Term: Bullish
Long Term: Bearish
Moving Averages: 10-period     50-period     200-period
Close: 26,541.69 26,615.58 27,662.62
Volatility: 14 21 20
Volume: 1,673,003,904 1,718,854,272 1,795,400,448

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 5.9% below 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 13 periods.

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