Hong Kong: HANG SENG INDEX (.HSI) set to rise as lingering hopes for progress in Sino-American trade negotiations
Hong Kong shares were set to rise for a third day on Thursday, as lingering hopes for progress in Sino-American trade negotiations and expectations for a rate cut by the U.S. Federal Reserve next week supported sentiment.
The Hang Seng Index had added 0.3% to 28,599.57 by noon after rising 0.5% over the last two days. Social media and gaming major Tencent Holdings climbed 1.6%, while Ping An Insurance Group advanced 0.8%.
Sands China slipped 1%. The Macao casino operator’s net income for the second quarter rose 19.7% from a year ago as net revenue increased 1.4%, according to excerpts from its parent company’s second-quarter results.
The S&P 500 Index and the Nasdaq Composite rose to record highs on Wednesday, while the Dow Jones Industrial Average slipped as investors digested quarterly earnings. Investors also await the Fed’s widely expected interest rate cut at its policy review next week.
Meanwhile, the White House on Wednesday said U.S. Trade Representative Robert Lighthizer and Treasury Secretary Steven Mnuchin will be traveling to China for trade talks.
Turnover on the Hong Kong Stock Exchange’s main board was at 37.29 billion Hong Kong dollars ($4.77 billion). Trading volumes in the city have been thinner than usual in recent weeks amid caution over Sino-American trade relations and political unrest in the city as citizens protest the government’s controversial extradition bill.
Overall, the bias in prices is: Upwards.
By the way, prices are vulnerable to a correction towards 28,196.38.
The projected upper bound is: 29,324.83.
The projected lower bound is: 27,882.67.
The projected closing price is: 28,603.75.
A white body occurred (because prices closed higher than they opened).
During the past 10 bars, there have been 8 white candles and 2 black candles for a net of 6 white candles. During the past 50 bars, there have been 24 white candles and 26 black candles for a net of 2 black candles.
A spinning top occurred (a spinning top is a candle with a small real body). Spinning tops identify a session in which there is little price action (as defined by the difference between the open and the close). During a rally or near new highs, a spinning top can be a sign that prices are losing momentum and the bulls may be in trouble.
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 44.4082. This is not an overbought or oversold reading. The last signal was a sell 3 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 54.78. 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 33 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 77. This is not a topping or bottoming area. The last signal was a buy 11 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 sell 3 period(s) ago.
Rex Takasugi – TD Profile
HANG SENG INDEX closed up 70.262 at 28,594.301. Volume was 44% below average (neutral) and Bollinger Bands were 59% narrower than normal.
Open High Low Close Volume___
Short Term: Neutral
Intermediate Term: Bullish
Long Term: Bullish
Moving Averages: 10-period 50-period 200-period
Close: 28,542.24 27,972.87 27,565.15
Volatility: 11 16 21
Volume: 1,112,142,592 1,667,631,872 1,807,669,120
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 3.7% above its 200-period moving average and is in an upward trend. Volatility is low 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 25 periods.