Hong Kong: HANG SENG INDEX (.HSI) investors keep a nervous eye on the progress of China-US trade talks

Hong Kong: HANG SENG INDEX (.HSI) investors keep a nervous eye on the progress of China-US trade talks

Hong Kong: HANG SENG INDEX (.HSI) investors keep a nervous eye on the progress of China-US trade talks

Hong Kong stocks went into the break with small losses on Tuesday as investors kept a nervous eye on the progress of China-US trade talks with a tariffs deadline just days away.

The Hang Seng index dipped 0.1 percent, to 26,471.

On the mainland, the Shanghai Composite Index slipped 0.2 percent, to 2,908 while the Shenzhen Composite Index also lost 0.2 percent, to 1,637.

There was little early reaction to data showing Chinese consumer inflation picked up in November but not as much as expected, with surging pork prices the key reason owing to African swine fever, which has seen a vast culling of the country’s pig herd. However, the drop in factory prices eased, soothing concerns about future inflation rates.

Other Asian markets fell with investors keeping a nervous eye on Washington which is due to impose fresh tariffs on Chinese goods.

Given the market has bought into the December tariff delay in a big way, all hell could break loose if the tariffs don’t get postponed.

“Indeed, that would be a bitter pill for investors to swallow as the reality.. sets in that they have yet again been taken down the trade talk garden path only to end up at the cliff edge.”

Tokyo went into the break marginally lower.

Sydney, Singapore and Taipei each eased 0.2 percent, while Manila was off 0.5 percent. However, Seoul, Wellington and Jakarta edged higher.

Technical Indicators

Overall, the bias in prices is: Downwards.

By the way, prices are vulnerable to a correction towards 26,717.22.

The projected upper bound is: 27,215.86.

The projected lower bound is: 25,676.66.

The projected closing price is: 26,446.26.

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 28 white candles and 22 black candles for a net of 6 white candles.

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 81.5450. This is an overbought reading. However, a signal is not generated until the Oscillator crosses below 80 The last signal was a buy 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 46.25. 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 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 -33. This is not a topping or bottoming area. The last signal was a buy 2 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 7 period(s) ago.

Rex Takasugi – TD Profile

HANG SENG INDEX closed down -58.111 at 26,436.619. Volume was 41% below average (neutral) and Bollinger Bands were 48% narrower than normal.

Open     High      Low     Close     Volume___
26,378.99026,527.09026,355.52926,436.619 956,293,312
Technical Outlook 
Short Term: Neutral
Intermediate Term: Bearish
Long Term: Bearish
Moving Averages: 10-period     50-period     200-period
Close: 26,473.96 26,656.37 27,626.43
Volatility: 16 18 19
Volume: 1,391,448,832 1,491,711,360 1,745,617,280

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 4.3% 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 13 periods.

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