Hong Kong: HANG SENG INDEX (.HSI) investors bag profits while waiting for fresh news on US-China trade negotiations

Hong Kong: HANG SENG INDEX (.HSI) investors bag profits while waiting for fresh news on US-China trade negotiations

Hong Kong: HANG SENG INDEX (.HSI) investors bag profits while waiting for fresh news on US-China trade negotiations

The Hang Seng Index extended a winning streak to a fifth day, eking a teensy gain as investors bagged profits while waiting for fresh news on US-China trade negotiations. China stocks ended down.

The Hang Seng rose 0.02 per cent to 27,688.64, with a mere 5.24 point gain.

The day’s hot stock was CK Life Sciences International Holdings, which shot up 153.5 per cent to 90 HK cents after reporting “improved outcomes” in clinical trials of a melanoma cancer vaccine by its wholly-owned US subsidiary Polynoma.

In Hong Kong, China Mengniu Dairy was the benchmark’s top percentage loser, falling 5.9 per cent to HK$30.50. Analysts blamed the fall on the management of the milk and ice cream maker saying the core operating gross profit margin cannot meet its target.

Property stocks rose.

New World Development rose 1.2 per cent to HK$11.62, Sun Hung Kai Properties climbed 0.7 per cent to HK$121.30, China Overseas Land and Investment rose 1.1 per cent to HK$27.40, while Wharf Real Estate increased 1.2 per cent to HK$46.80.

Technical Indicators

Overall, the bias in prices is: Upwards.

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

By the way, prices are vulnerable to a correction towards 26,708.58.

The projected upper bound is: 28,445.23.

The projected lower bound is: 27,012.38.

The projected closing price is: 27,728.81.

Candlesticks

A white body occurred (because prices closed higher than they opened).
During the past 10 bars, there have been 7 white candles and 3 black candles for a net of 4 white candles. During the past 50 bars, there have been 22 white candles and 28 black candles for a net of 6 black candles.

Three white candles occurred in the last three days. Although these candles were not big enough to create three white soldiers, the steady upward pattern is bullish.

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 96.4087. This is an overbought reading. However, a signal is not generated until the Oscillator crosses below 80 The last signal was a sell 12 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 70.02. This is where it usually tops. The RSI usually forms tops and bottoms before the underlying security. A buy or sell signal is generated when the RSI moves out of an overbought/oversold area. The last signal was a buy 55 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 171.This is an overbought reading. However, a signal isn’t generated until the indicator crosses below 100. The last signal was a sell 12 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 buy 17 period(s) ago.

Rex Takasugi – TD Profile

HANG SENG INDEX closed up 5.240 at 27,688.641. Volume was 16% below average (neutral) and Bollinger Bands were 16% narrower than normal.

Open     High      Low     Close     Volume___
27,636.33027,750.91027,547.77027,688.6411,316,670,976
Technical Outlook 
Short Term: Overbought
Intermediate Term: Bullish
Long Term: Bearish
Moving Averages: 10-period     50-period     200-period
Close: 27,073.79 26,486.17 27,742.38
Volatility: 13 17 18
Volume: 1,536,544,384 1,604,070,016 1,774,633,600

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.

Summary

HANG SENG INDEX is currently 0.2% below its 200-period moving average and is in an upward trend. Volatility is relatively normal as compared to the average volatility over the last 10 periods. Our volume indicators reflect moderate flows of volume into .HSI (mildly bullish). Our trend forecasting oscillators are currently bullish on .HSI and have had this outlook for the last 4 periods. Our momentum oscillator is currently indicating that .HSI is currently in an overbought condition.

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