Hong Kong: HANG SENG INDEX (.HSI) potential trade deal between US and Beijing
- Hong Kong’s Hang Seng index surged 4.21 percent by Friday’s close following a report that U.S. President Donald Trump has asked officials in his administration to start drafting a potential trade deal with Beijing..
- Meanwhile, China’s Shanghai composite and Shenzhen composite saw gains of more than 2.5 percent apiece.
Stock markets in Greater China posted large gains on Friday on the back of comments from U.S. President Donald Trump and a news report that both indicated potential progress in Washington’s trade negotiations with Beijing.
Hong Kong’s Hang Seng index surged 4.21 percent to close at 26,486.35. while the Shanghai composite gained 2.7 percent to close at around 2,676.48 and the Shenzhen composite advanced 3.428 percent to finish at 1,351.09.
Those markets, which had been higher all day, climbed higher after Bloomberg reported that Trump had asked officials in his administration to start drafting a potential trade deal with China.
Overall, the bias in prices is: Downwards.
By the way, prices are vulnerable to a correction towards 26,901.56.
The projected upper bound is: 27,625.34.
The projected lower bound is: 25,296.71.
The projected closing price is: 26,461.02.
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 22 white candles and 28 black candles for a net of 6 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. There have been 5 rising windows in the last 50 candles–this makes the current rising window even more bullish.
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 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 94.1756. 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 56.52. 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 14 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 174.This is an overbought reading. However, a signal isn’t generated until the indicator crosses below 100. The last signal was a buy 2 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 1 period(s) ago.
Rex Takasugi – TD Profile
HANG SENG INDEX closed up 1,070.350 at 26,486.350. Volume was 89% above average (neutral) and Bollinger Bands were 0% 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: 25,274.12 26,688.67 29,321.26
Volatility: 38 28 24
Volume: 2,277,929,472 1,970,127,616 2,154,906,880
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 9.7% below its 200-period moving average and is in an downward trend. Volatility is extremely high when compared to the average volatility over the last 10 periods. There is a good possibility that volatility will decrease and prices will stabilize in the near term. 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 20 periods.
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