Hong Kong: HANG SENG INDEX (.HSI) rally on restart of talks to end trade war

Hong Kong: HANG SENG INDEX (.HSI) rally on restart of talks to end trade war

Hong Kong: HANG SENG INDEX (.HSI) rally on restart of talks to end trade war

Mainland markets rallied on Monday after Presidents Donald Trump and Xi Jinping hit the pause button on the trade war over the weekend, boosting trading sentiment.

The Shanghai Composite ended up 2.22 per cent to 3,044.90, its highest level since April 30, while the CSI 300 of large caps jumped 2.88 per cent to 3,935.81, marking its highest level since April 25.

Technology led both bourses, and sectors were up across the board.

Hong Kong’s stock market was shut for the anniversary holiday marking the 1997 handover from Britain to China of the city. Protesters and police clashed again in demonstrations against a proposal that would allow extraditions to China. Protests in recent weeks have at times weighed on Hong Kong shares.

Going against the broad rally, rare earth stocks slumped. The minerals have become a focal point for investors after Xi visited a rare earth firm in southern China in May, sparking speculation Beijing could cut off supplied to the US as a bargaining chip and boosting linked stock prices. The US relies on China for 80 per cent of its rare earth minerals. It became a defensive play in the trade war.

Overall, the bias in prices is: Upwards.

The projected upper bound is: 29,385.34.

The projected lower bound is: 27,645.22.

The projected closing price is: 28,515.28.

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 24 white candles and 26 black candles for a net of 2 black 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 73.4042. This is not an overbought or oversold reading. 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 59.68. 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 15 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 79. This is not a topping or bottoming area. The last signal was a sell 3 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 15 period(s) ago.

Rex Takasugi – TD Profile

HANG SENG INDEX closed down -78.801 at 28,542.619. Volume was 23% below average (neutral) and Bollinger Bands were 37% wider than normal.

Open High Low Close Volume___
28,632.59028,632.59028,416.96128,542.6191,532,668,032

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

Moving Averages: 10-period     50-period     200-period
Close: 28,203.72 28,319.30 27,448.35
Volatility: 19 19 22
Volume: 1,741,734,912 1,974,906,240 1,876,630,784

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 4.0% above its 200-period moving average and is in an upward 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 bullish on .HSI and have had this outlook for the last 7 periods.

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