Hong Kong: HANG SENG INDEX (.HSI) questions remain about the details of the trade agreement

Hong Kong: HANG SENG INDEX (.HSI) questions remain about the details of the trade agreement

Hong Kong: HANG SENG INDEX (.HSI) questions remain about the details of the trade agreement

Stocks in Asia mostly slipped on Tuesday amid uncertainty about the future of U.S.-China trade relations.

Japan’s Nikkei 225 fell by 2.39 percent to close at 22,036.05 while the Topix index shed 2.36 percent to 1,649.20 by the end of the trading day.

Shares of automaker Nissan slipped 1.18 percent following a Reuters report that the company’s external board is set to meet today to discuss a replacement for arrested former Chairman Carlos Ghosn. The Sankei newspaper reported that Tokyo prosecutors were planning to arrest Ghosn amid new claims that he understated his income, according to Reuters.

Meanwhile in South Korea, the Kospi slipped 0.82 percent to close at 2,114.35. Hong Kong’s Hang Seng index slipped 0.22 percent, as of the final hour of trading.

Overnight on Wall Street, the major indexes saw gains. The moves stateside came after U.S. President Donald Trump and Chinese President Xi Jinping agreed to a 90-day postponement of any new tariffs in the trade war that has weighed heavily on global stock markets for most of 2018.

There have been differences, however, between the descriptions of the agreement from the White House, from Trump himself and from Beijing. Questions also remain over who would lead the U.S. delegation in future trade talks with Beijing.

Overall, the bias in prices is: Upwards.

Note: this chart shows extraordinary price action to the upside.

The projected upper bound is: 28,419.34.

The projected lower bound is: 26,092.85.

The projected closing price is: 27,256.10.

Candlesticks

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 23 white candles and 27 black candles for a net of 4 black candles.

An engulfing bullish line occurred (where a white candle’s real body completely contains the previous black candle’s real body). The engulfing bullish pattern is bullish during a downtrend. It then signifies that the momentum may be shifting from the bears to the bulls.

If the engulfing bullish pattern occurs during an uptrend (which appears to be the case with HANG SENG INDEX), it may be a last engulfing top which indicates a top. The test to see if this is the case is if the next candle closes below the top of the current (white) candle’s real body.

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 83.0813. This is an overbought reading. However, a signal is not generated until the Oscillator crosses below 80 The last signal was a sell 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 64.72. 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 36 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 165.This is an overbought reading. However, a signal isn’t generated until the indicator crosses below 100. The last signal was a sell 18 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 buy 23 period(s) ago.

Rex Takasugi – TD Profile

HANG SENG INDEX closed up 78.400 at 27,260.439. Volume was 7% above average (neutral) and Bollinger Bands were 15% narrower than normal.

Open High Low Close Volume___
27,119.18927,260.43926,984.71127,260.4391,938,642,560

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

Moving Averages: 10-period 50-period 200-period
Close: 26,470.95 26,136.22 28,687.59
Volatility: 19 28 23
Volume: 1,609,039,104 1,862,404,992 1,938,718,080

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 5.0% below its 200-period moving average and is in an upward trend. Volatility is extremely low when compared to the average volatility over the last 10 periods. There is a good possibility that there will be an increase in volatility along with sharp price fluctuations in the near future. Our volume indicators reflect moderate flows of volume into .HSI (mildly bullish). Our trend forecasting oscillators are currently bullish on .HSI and have had this outlook for the last 13 periods.

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