Hong Kong: HANG SENG INDEX (.HSI) mixed as investors watched for developments on the U.S.-China trade front

Hong Kong: HANG SENG INDEX (.HSI) mixed as investors watched for developments on the U.S.-China trade front

Hong Kong: HANG SENG INDEX (.HSI) mixed as investors watched for developments on the U.S.-China trade front

Asia Pacific stocks were mixed on Friday as investors watched for developments on the U.S.-China trade front.

Mainland Chinese stocks were edged up on the day, with the Shenzhen component up 0.89% to 9,548.96 and Shenzhen composite advancing 0.91% to approximately 1,612.26. The Shanghai composite added 0.11% to around 2,932.17.

China’s industrial profits for August dropped 2% from a year earlier, according to the country’s National Bureau of Statistics. That followed a 2.6% gain in July and a 3.1% in June.

“The pressure is there, it’s not just in terms of … exports,” Sian Fenner, lead Asia economist at Oxford Economics, told CNBC’s “Street Signs” on Friday. “The investment growth has remained very weak and we’ve even seen that consumption has actually slowed with what we’ve been seeing in retail sales.”

In Hong Kong, the Hang Seng index slipped 0.3%, as of its final hour of trading.

Technical Indicators

Overall, the bias in prices is: Downwards.

The projected upper bound is: 26,770.26.

The projected lower bound is: 25,026.94.

The projected closing price is: 25,898.60.

Candlesticks

A black body occurred (because prices closed lower than they opened).
During the past 10 bars, there have been 0 white candles and 10 black candles for a net of 10 black candles. During the past 50 bars, there have been 17 white candles and 33 black candles for a net of 16 black candles.

A spinning top occurred (a spinning top is a candle with a small real body). Spinning tops identify a session in which there is little price action (as defined by the difference between the open and the close). During a rally or near new highs, a spinning top can be a sign that prices are losing momentum and the bulls may be in trouble.

Three black candles occurred in the last three days. Although these candles were not big enough to create three black crows, the steady downward pattern is bearish.

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 12.1417. This is an oversold reading. However, a signal is not generated until the Oscillator crosses above 20 The last signal was a sell 9 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 39.95. 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 29 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 -118.This is an oversold reading. However, a signal isn’t generated until the indicator crosses above -100. The last signal was a sell 9 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 4 period(s) ago.

Rex Takasugi – TD Profile

HANG SENG INDEX closed down -87.119 at 25,954.811. Volume was 42% below average (neutral) and Bollinger Bands were 17% narrower than normal.

Open     High      Low     Close     Volume___
25,977.98026,017.46125,840.66025,954.811 984,279,488
Technical Outlook 
Short Term: Oversold
Intermediate Term: Bullish
Long Term: Bearish
Moving Averages: 10-period     50-period     200-period
Close: 26,401.90 26,559.37 27,656.09
Volatility: 11 21 20
Volume: 1,653,782,272 1,712,539,648 1,790,628,608

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.

Summary

HANG SENG INDEX is currently 6.2% below its 200-period moving average and is in an upward trend. Volatility is high 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 14 periods.

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