Hong Kong: HANG SENG INDEX (.HSI) resumption of trade talks between the U.S. and China in Washington
“Ninety percent of the deal is done, but the last 10% is the hardest part,” U.S. Chamber of Commerce executive Myron Brilliant said, according to the Financial Times. The report added that if a deal is not reached this week, talks may be extended to as late as June. China’s Vice Premier Liu He, the top trade adviser to President Xi Jinping, arrived in Washington on Tuesday for a continuation of high-level talks held last week in Beijing.
Traders also cheered a private survey released Wednesday showing that China’s services sector expanded in March. China’s Caixin Services PMI, a survey of service industry purchasing managers, had a reading of 54.4 in March. This is markedly better than February’s reading of 51.1 and the sharpest improvement since January 2018.
The index is on a 100-point scale, with 50 separating contraction from growth. This added to optimism after China released encouraging manufacturing data over the weekend.
On Wall Street, a listless trading day resulted in an uneven finish for stock indexes. Gains by big technology companies were offset by losses in other sectors. The broad S&P 500 index was almost flat, finishing at 2,867.24 on Tuesday. Stock futures were higher Wednesday, lifted by trade-deal hopes.
Overall, the bias in prices is: Upwards.
Note: this chart shows extraordinary price action to the upside.
The projected upper bound is: 30,762.63.
The projected lower bound is: 29,325.97.
The projected closing price is: 30,044.30.
A white body occurred (because prices closed higher than they opened).
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 32 white candles and 18 black candles for a net of 14 white candles.
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 95.3823. This is an overbought reading. However, a signal is not generated until the Oscillator crosses below 80 The last signal was a buy 4 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 68.79. 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 26 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 152.This is an overbought reading. However, a signal isn’t generated until the indicator crosses below 100. The last signal was a sell 9 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 361.721 at 29,986.391. Volume was 16% above average (neutral) and Bollinger Bands were 3% narrower than normal.
Open High Low Close Volume___
Short Term: Overbought
Intermediate Term: Bullish
Long Term: Bullish
Moving Averages: 10-period 50-period 200-period
Close: 29,100.31 28,506.76 27,433.36
Volatility: 19 16 23
Volume: 1,968,584,576 1,906,756,864 1,857,608,960
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 is currently 9.3% above its 200-period moving average and is in an upward 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 bullish on .HSI and have had this outlook for the last 1 periods.