Hong Kong: HANG SENG INDEX (.HSI) President Donald Trump says US-China relations remain “very strong”

Hong Kong: HANG SENG INDEX (.HSI) President Donald Trump says US-China relations remain “very strong”

Hong Kong: HANG SENG INDEX (.HSI) President Donald Trump says US-China relations remain “very strong”

Mr Trump said talks between Washington and Beijing will continue even after a deadline passed on Friday for them to reach an agreement.

As a result the US raised tariffs to 25% from 10% on goods from China.

China says it “deeply regrets” the US action and would have to take “necessary counter-measures”.

However Beijing also confirmed on Friday that further negotiations would take place following two days of what were described as “honest” and “constructive” talks.

The latest US move raises tariffs on $200bn (£153.7bn) worth of Chinese imports.

What has Trump said?

On top of the tariffs implemented on Friday, Mr Trump said a process had begun to place the full 25% tariff on a further $325bn of Chinese goods.

The tariffs taken in would be used to buy US agricultural goods, which would then be used for “humanitarian assistance”, Mr Trump said.

The president tweeted that, depending on the outcome of future negotiations, the tariffs “may or may not” be removed.

Mr Trump earlier said he was in “no rush” to reach a trade agreement following two days of bilateral talks.

Only recently, the US and China appeared to be close to ending months of tensions over trade.

Why are the US and China at odds?

China has been a frequent target of Mr Trump’s anger, with the US president criticising trade imbalances between the two countries and Chinese intellectual property rules, which he says hobble US companies.

Some in China see the trade war as part of an attempt by the US to curb its rise, with Western governments increasingly nervous about China’s growing influence in the world.

Both sides have already imposed tariffs on billions of dollars worth of one another’s goods.

Last year the US imposed a 10% tariff on $200bn worth of Chinese products – including fish, handbags, clothing and footwear.

Overall, the bias in prices is: Sideways.

The projected upper bound is: 29,375.25.

The projected lower bound is: 27,708.87.

The projected closing price is: 28,542.06.

Candlesticks

A white body occurred (because prices closed higher than they opened).
During the past 10 bars, there have been 7 white candles and 3 black candles for a net of 4 white candles. During the past 50 bars, there have been 27 white candles and 23 black candles for a net of 4 white candles.

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 10.2895. This is an oversold reading. However, a signal is not generated until the Oscillator crosses above 20 The last signal was a buy 8 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 37.41. 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 19 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 -157.This is an oversold reading. However, a signal isn’t generated until the indicator crosses above -100. The last signal was a buy 8 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 14 period(s) ago.

Rex Takasugi – TD Profile

HANG SENG INDEX closed up 239.170 at 28,550.240. Volume was 33% above average (neutral) and Bollinger Bands were 13% wider than normal.

Open High Low Close Volume___
28,462.34028,833.44928,203.22128,550.2402,496,371,200

Technical Outlook
Short Term: Oversold
Intermediate Term: Bearish
Long Term: Bullish

Moving Averages: 10-period 50-period 200-period
Close: 29,366.00 29,305.67 27,520.50
Volatility: 26 18 22
Volume: 1,956,729,216 1,990,807,936 1,830,092,672

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 3.7% above 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 3 periods.

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