Hong Kong: HANG SENG INDEX (.HSI) moves up, but trade talks worries remain

Hong Kong: HANG SENG INDEX (.HSI) moves up, but trade talks worries remain

Hong Kong: HANG SENG INDEX (.HSI) moves up, but trade talks worries remain

Hong Kong stocks ended Monday’s morning session on a positive note following a forecast-beating report on the mainland factory activity, but worries about China-US talks remained

The Hang Seng index added 0.5 percent, to 26,468.

On the mainland, the Shanghai Composite index was up 0.4 percent, to 2,882 while the Shenzhen Composite Index gained 0.5 percent, to 1,600.

Tokyo ended the morning more than 1 percent higher, Singapore added 0.1 percent and Wellington was up 0.2 percent with Jakarta and Manila also rising.

Sydney added 0.5 percent and Seoul gained 0.3 percent.

But while the week started on a positive note, worries about the trade talks were revived by China’s Global Times newspaper saying Beijing wanted all US tariffs rolled back as part of a mini deal, a move observers said Washington is unlikely to agree to.

Oanda senior market analyst Jeffrey Halley said: “It is hard to see the US swallowing a very bitter trade pill like that; it would, in effect, remove all of the US’s leverage in the far more difficult comprehensive trade negotiations to come.”

“It is now becoming more apparent why the talks have dragged on so long.”

Technical Indicators

Overall, the bias in prices is: Downwards.

The projected upper bound is: 27,209.96.

The projected lower bound is: 25,678.52.

The projected closing price is: 26,444.24.

Candlesticks

A black body occurred (because prices closed lower 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 25 white candles and 25 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.

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 22.5245. This is not an overbought or oversold reading. The last signal was a buy 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 44.36. 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 16 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 -70. This is not a topping or bottoming area. The last signal was a buy 10 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 1 period(s) ago.

Rex Takasugi – TD Profile

HANG SENG INDEX closed up 98.230 at 26,444.721. Volume was 18% below average (neutral) and Bollinger Bands were 12% narrower than normal.

Open     High      Low     Close     Volume___
26,475.34026,511.55126,393.09026,444.7211,348,911,744
Technical Outlook 
Short Term: Neutral
Intermediate Term: Bearish
Long Term: Bearish
Moving Averages: 10-period     50-period     200-period
Close: 26,759.13 26,631.98 27,685.52
Volatility: 21 18 19
Volume: 1,508,834,304 1,519,047,680 1,756,454,784

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 4.5% below its 200-period moving average and is in an downward 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 bearish on .HSI and have had this outlook for the last 7 periods.

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