Hong Kong: HANG SENG INDEX (.HSI) higher on fresh hopes for Sino-U.S. trade talks after leaders of the world’s two largest economies sent positive signals

Hong Kong: HANG SENG INDEX (.HSI) higher on fresh hopes for Sino-U.S. trade talks after leaders of the world’s two largest economies sent positive signals

Hong Kong: HANG SENG INDEX (.HSI) higher on fresh hopes for Sino-U.S. trade talks after leaders of the world’s two largest economies sent positive signals

Hong Kong stocks rallied on Monday following key elections, aided by fresh hopes for Sino-U.S. trade talks after leaders of the world’s two largest economies sent positive signals.

The Hang Seng index added 1.8%, to 27,062.53 points, while the Hong Kong China Enterprises Index gained 1.5%, to 10,661.04 points.

The leaders of the United States and China on Friday underscored their desire to sign an initial trade deal and defuse a 16-month tariff war that has lowered global growth, providing a welcome boost to financial markets.

U.S. national security adviser Robert O’Brien said on Saturday that an initial agreement is still possible by the end of the year, but warned Washington would not turn a blind eye to what happens in Hong Kong.

Pro-democracy candidates in Hong Kong romped to a landslide and symbolic majority in district council elections after residents turned out in record numbers on Sunday to vote, following six months of anti-government protests in the embattled city.

The elections, or at least their smooth holding, helped lift market sentiment, said Linus Yip, a Hong Kong-based analyst with First Shanghai Securities, adding positive comments over the weekend on the trade talks were also a plus.

Technical Indicators

Overall, the bias in prices is: Sideways.

The projected upper bound is: 27,756.39.

The projected lower bound is: 26,225.91.

The projected closing price is: 26,991.15.

Candlesticks

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 24 white candles and 26 black candles for a net of 2 black candles.

A rising window occurred (where the top of the previous shadow is below the bottom of the current shadow). This usually implies a continuation of a bullish trend. There have been 4 rising windows in the last 50 candles–this makes the current rising window even more 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.

Stochastic Oscillator

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 47.8252. This is not an overbought or oversold reading. The last signal was a buy 4 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 52.73. 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 11 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 11. This is not a topping or bottoming area. The last signal was a buy 5 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 8 period(s) ago.

Rex Takasugi – TD Profile

HANG SENG INDEX closed up 397.959 at 26,993.039. Volume was 7% below average (neutral) and Bollinger Bands were 12% narrower than normal.

Open     High      Low     Close     Volume___
26,873.35027,114.22126,852.89126,993.0391,497,175,808
Technical Outlook 
Short Term: Neutral
Intermediate Term: Bearish
Long Term: Bearish
Moving Averages: 10-period     50-period     200-period
Close: 26,700.66 26,650.73 27,718.67
Volatility: 23 18 19
Volume: 1,435,052,416 1,519,380,096 1,752,415,616

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 gapped up today (bullish) on normal volume. Possibility of a Runaway Gap which usually signifies a continuation of the trend. Four types of price gaps exist – Common, Breakaway, Runaway, and Exhaustion. Gaps acts as support/resistance.
HANG SENG INDEX is currently 2.6% below its 200-period moving average and is in an downward trend. Volatility is extremely high when compared to the average volatility over the last 10 periods. There is a good possibility that volatility will decrease and prices will stabilize in the near term. 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 2 periods.

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