Hong Kong: HANG SENG INDEX (.HSI) on track for a rally after a breakthrough in the US-China trade talks suspended a tariff escalation
Regional sharemarkets are on track for a rally after a breakthrough in the US-China trade talks suspended a tariff escalation due this week on $US250 billion of Chinese exports set for US shores and lifted investors’ hopes of a more substantial resolution.
Futures indicate the S&P/ASX 200 Index will rise half a per cent, or 34 points, on Monday. On Wall Street, the S&P 500 and Dow Jones Industrial Average rose more than 1 per cent, and the Euro Stoxx 50 index rose more than 2 per cent, when Chinese Vice Premier Liu He and President Donald Trump convened in the oval office to present a united front on Friday.
Hong Kong’s Hang Seng is on track for a 0.75 per cent lift and China’s CSI 300 a gain of 1.35 per cent. US 10-year Treasury yields sold off by 6 basis points to 1.73 per cent.
“The deal that we’re seeing now is a reflection of the political incentives that are facing Donald Trump today,” Montaka Global chief investment officer Andrew Macken said.
“It’s pretty clear Trump’s priority right now is to be re-elected in November 2020, everybody knows one of the most important factors of any president being re-elected is a strong economy, and we’ve just started to see in the last few months the trade dispute with China has started to be felt in the US.”
Overall, the bias in prices is: Sideways.
By the way, prices are vulnerable to a correction towards 26,504.29.
The projected upper bound is: 27,171.27.
The projected lower bound is: 25,386.83.
The projected closing price is: 26,279.05.
A big white candle occurred. This is generally considered bullish, as prices closed significantly higher than they opened. If the candle appears when prices are “low,” it may be the first sign of a bottom. If it occurs when prices are rebounding off of a support area (e.g., a moving average, trendline, or retracement level), the long white candle adds credibility to the support. Similarly, if the candle appears during a breakout above a resistance area, the long white candle adds credibility to the breakout.
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 20 white candles and 30 black candles for a net of 10 black candles.
A rising window occurred (where the top of the previous shadow is below the bottom of the current shadow). This usually implies a continuation of a bullish trend.
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 49.1336. This is not an overbought or oversold reading. The last signal was a buy 7 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 51.89. 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 37 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 77. This is not a topping or bottoming area. The last signal was a buy 0 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 sell 12 period(s) ago.
Rex Takasugi – TD Profile
HANG SENG INDEX closed up 600.510 at 26,308.439. Volume was 24% above average (neutral) and Bollinger Bands were 14% narrower than normal.
Open High Low Close Volume___
Short Term: Neutral
Intermediate Term: Bearish
Long Term: Bearish
Moving Averages: 10-period 50-period 200-period
Close: 25,965.56 26,184.86 27,647.54
Volatility: 17 22 19
Volume: 1,434,285,568 1,751,398,784 1,780,203,904
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 gapped up today (bullish) on normal volume. Possibility of a Runaway Gap which usually signifies a continuation of the trend. Four types of price gaps exist – Common, Breakaway, Runaway, and Exhaustion. Gaps acts as support/resistance.
HANG SENG INDEX is currently 4.8% below its 200-period moving average and is in an downward trend. Volatility is low as compared to the average volatility over the last 10 periods. Our volume indicators reflect moderate flows of volume out of .HSI (mildly bearish). Our trend forecasting oscillators are currently bearish on .HSI and have had this outlook for the last 4 periods. Our momentum oscillator has set a new 14-period high while the security price has not. This is a bullish divergence.
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