Hong Kong: HANG SENG INDEX (.HSI) market awaits U.S. data

Hong Kong: HANG SENG INDEX (.HSI) market awaits U.S. data

Hong Kong: HANG SENG INDEX (.HSI) market awaits U.S. data

Hong Kong stocks ended a tick higher on Tuesday as investors awaited U.S. retail sales data and corporate earnings to gauge the health of the world’s biggest economy ahead of a likely U.S. rate cut later this month.

Encouraging Chinese June data on Monday had provided some relief to investors worried about the economic outlook, but uncertainty around the Sino-U.S. trade war continue to curb risk appetite. ** The Hang Seng index ended up 0.2% at 28,619.62, while the China Enterprises Index also closed 0.2% higher at 10,865.52 points.

Data on Monday showed China’s economic growth slowed to 6.2% in the second quarter, its weakest pace in at least 27 years. But June activity data beat expectations, with a pick-up in investment in particular suggesting earlier stimulus measures are finally starting to kick in.

“While higher tariffs and trade uncertainty should continue to depress trade and business investment, a rebound in infrastructure investment and resilience in consumption should help stabilize growth in H2,” UBS wrote on Tuesday.

The sub-index of the Hang Seng tracking energy shares dipped 0.4%, while the IT sector ended up 0.3%, the financial sector ended 0.01% higher and the property sector closed 0.19% firmer.

Overall, the bias in prices is: Upwards.

The projected upper bound is: 29,465.34.

The projected lower bound is: 27,720.91.

The projected closing price is: 28,593.13.

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.

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 87.8792. This is an overbought reading. However, a signal is not generated until the Oscillator crosses below 80 The last signal was a buy 2 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 57.34. 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 26 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 23. This is not a topping or bottoming area. The last signal was a buy 4 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 5 period(s) ago.

Rex Takasugi – TD Profile

HANG SENG INDEX closed up 64.738 at 28,619.619. Volume was 44% below average (neutral) and Bollinger Bands were 37% narrower than normal.

Open High Low Close Volume___
28,583.93028,634.65028,489.41028,619.6191,056,373,056

Technical Outlook
Short Term: Neutral
Intermediate Term: Bullish
Long Term: Bullish

Moving Averages: 10-period     50-period     200-period
Close: 28,515.63 28,030.17 27,531.05
Volatility: 12 20 22
Volume: 1,150,762,240 1,859,268,864 1,838,134,912

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 4.0% above its 200-period moving average and is in an upward trend. Volatility is low 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 18 periods.

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