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Hong Kong: HANG SENG INDEX (.HSI) investors monitoring further developments on the U.S.-China trade front

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Hong Kong: HANG SENG INDEX (.HSI) investors monitoring further developments on the U.S.-China trade front

Major Asian markets were mixed on Tuesday as investors monitored further developments on the U.S.-China trade front, with the two economic powerhouses working toward a deal.

In Tokyo, the Nikkei 225 index gained 106.86 points, or 0.5%, to 22,974.13.

The Japanese yen traded at 108.95 against the U.S. dollar after weakening from levels below 108.9 in the previous session.

In Hong Kong, the Hang Seng Index dumped 104.50 points, or 0.4%, to 26,786.76, with Hong Kong-listed shares of HSBC dropping 1.24% after the lender reported third-quarter pre-tax profits that dropped 18% year-on-year.

Meanwhile, Hong Kong Chief Executive Carrie Lam said Tuesday she expects the city to book negative growth for 2019, amid ongoing protests that have lasted for months.

The Australian dollar changed hands at $0.6853 after an earlier low of $0.6832. The moves came after Reserve Bank of Australia Governor Philip Lowe said in a speech on Tuesday that it is “extraordinarily unlikely” that the country will see negative interest rates.

CHINA

In Shanghai, the CSI 300 subtracted 16.35 points, or 0.4%, to 3,910.23
Investors continue to watch for developments in U.S.-China trade. The Office of the U.S. Trade Representative said Monday that Washington will consider extending certain tariff exclusions on $34 billion worth of imports from China. The USTR said last week that China and the U.S. are close to finalizing a phase one deal.

For his part, U.S. President Donald Trump said the deal with China is expected to be signed ‘ahead of schedule,’ but did not elaborate on the timing.

In other markets

In Singapore, the Straits Times Index returned to trading after a long weekend, with a gain of 11.51 points, or 0.4%, to 3,197.04

In Taiwan, the Taiex advanced 18.85 points, or 0.2%, to 11,333.87

In Korea, the Kospi demurred 0.91 points to 2,092.69

In Australia, the ASX 200 edged up 4.71 points, or 0.1%, to 6,745.42

In New Zealand, the NZX resumed trading after a long weekend, picking up 5.11 points, or 0.1%, to 10,793.75

Technical Indicators

Overall, the bias in prices is: Sideways.

The projected upper bound is: 27,568.43.

The projected lower bound is: 26,047.19.

The projected closing price is: 26,807.81.

Candlesticks

A big black candle occurred. This is bearish, as prices closed significantly lower than they opened. If the candle appears when prices are “high,” it may be the first sign of a top. If it occurs when prices are confronting an overhead resistance area (e.g., a moving average, trendline, or price resistance level), the long black candle adds credibility to the resistance. Similarly, if the candle appears as prices break below a support area, the long black candle confirms the failure of the support area.
During the past 10 bars, there have been 5 white candles and 5 black candles. During the past 50 bars, there have been 21 white candles and 29 black candles for a net of 8 black 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 62.0564. This is not an overbought or oversold reading. The last signal was a sell 6 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 56.46. 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 49 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 76. This is not a topping or bottoming area. The last signal was a sell 6 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 11 period(s) ago.

Rex Takasugi – TD Profile

HANG SENG INDEX closed down -104.500 at 26,786.760. Volume was 4% below average (neutral) and Bollinger Bands were 26% narrower than normal.

Open     High      Low     Close     Volume___
27,027.56127,027.56126,729.06126,786.7601,515,348,608
Technical Outlook 
Short Term: Overbought
Intermediate Term: Bullish
Long Term: Bearish
Moving Averages: 10-period     50-period     200-period
Close: 26,745.43 26,348.32 27,712.71
Volatility: 11 18 18
Volume: 1,408,734,592 1,640,492,160 1,782,037,888

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.

Summary

HANG SENG INDEX is currently 3.3% 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 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 8 periods.

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