Hong Kong: HANG SENG INDEX (.HSI) markets up on fresh hopes for U.S.-China ‘phase-one’ trade deal
Asian markets rose slightly in early trading Tuesday after encouraging news about U.S.-China trade talks.
President Donald Trump on Monday said “the deal with China is coming along very well. They have to make a deal because their supply chain is going down the tubes.” That follows comments Saturday by China’s top trade negotiator, Vice Premier Liu He, who said “substantial progress” has been made toward a phase-one agreement. U.S. Trade Rep. Robert Lighthizer said Monday that he is aiming for a phase-one deal to be signed by Trump and China’s President Xi Jinping in mid-November at the Asia-Pacific Economic Cooperation summit in Chile.
“Unlike previous trade talks where expectations centered on the view that something is better than nothing, this time around there appears to be a tangible and workable roadmap in place which is supported by official confirmation that the U.S. and China were both on the same page about the intent to work towards Phase 1 of a ‘deal’ by mid-November,” Stephen Innes, Asia Pacific market strategist for AxiTrader, wrote in a note. “And the fact that Phase 2 is even being discussed at this time, which contains ‘actual meat’ according to United States Secretary of Commerce, suggesting that both U.S. and China may have finally found a bridge that isn’t too far.”
Hong Kong’s Hang Seng Index HSI, +0.23% advanced 0.2%, the Shanghai Composite SHCOMP, +0.50% was about flat, while the Shenzhen Composite 399106, +1.01% rose 0.%. South Korea’s Kospi 180721, +1.16% gained 1.1% and benchmark indexes in Taiwan Y9999, +0.78% , Singapore STI, +0.69% and Indonesia JAKIDX, +0.43% made gains. Australia’s S&P/ASX XJO, +0.30% was up 0.3%. Japan’s Nikkei was closed for a holiday.
Among individual stocks, Apple component maker AAC 2018, +5.75% surged in Hong Kong, and Geely Automobile 175, +4.69% and Sands China 1928, +2.60% advanced as well. Samsung 005930, +1.79% and chip maker SK Hynix 000660, +2.06% rose in South Korea, while Rio Tinto BHP, +1.17% and Beach Energy BPT, +1.73% gained in Australia.
Overall, the bias in prices is: Sideways.
The projected upper bound is: 27,590.65.
The projected lower bound is: 26,015.62.
The projected closing price is: 26,803.14.
A black body occurred (because prices closed lower than they opened).
During the past 10 bars, there have been 6 white candles and 4 black candles for a net of 2 white candles. During the past 50 bars, there have been 21 white candles and 29 black candles for a net of 8 black candles.
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.
One method of interpreting the Stochastic Oscillator is looking for overbought areas (above 80) and oversold areas (below 20). The Stochastic Oscillator is 57.5238. This is not an overbought or oversold reading. The last signal was a sell 1 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 59.37. 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 44 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 83. This is not a topping or bottoming area. The last signal was a sell 1 period(s) ago.
The Moving Average Convergence/Divergence indicator (MACD) gives signals when it crosses its 9 period signal line. The last signal was a buy 6 period(s) ago.
Rex Takasugi – TD Profile
HANG SENG INDEX closed up 60.520 at 26,786.199. Volume was 7% below average (neutral) and Bollinger Bands were 32% narrower than normal.
Open High Low Close Volume___
Short Term: Overbought
Intermediate Term: Bullish
Long Term: Bearish
Moving Averages: 10-period 50-period 200-period
Close: 26,446.92 26,226.88 27,680.01
Volatility: 16 19 19
Volume: 1,589,609,472 1,687,553,920 1,783,092,608
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.
HANG SENG INDEX is currently 3.2% 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 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 3 periods.