Hong Kong: HANG SENG INDEX (.HSI) slips as trade deal optimism wanes

Hong Kong: HANG SENG INDEX (.HSI) slips as trade deal optimism wanes

Hong Kong: HANG SENG INDEX (.HSI) slips as trade deal optimism wanes

Hong Kong stocks finished the morning session slightly lower on Monday as dealers await concrete details of the partial trade pact agreed between China and the US last week.

The Hang Seng index eased 0.4 percent, to 27,585 by the break.

On the mainland, the Shanghai Composite Index edged up 0.1 percent to 2,971 at midday break while the Shenzhen Composite Index rose 0.9 percent to 1,674.

Anticipation that a pact was near helped fire global markets towards the end of last week, but selling began soon after the announcement was made with Wall Street finishing flat.

Tokyo ended the morning barely moved, while Seoul was flat.

Singapore edged 0.1 percent higher and Taipei put on 0.2 percent but Manila was slightly lower, though Sydney rose more than 1 percent.

“Yes, we have a deal, but trade negotiations will continue,” said Stephen Innes at AxiTrader. “For now, escalation seems to be off the table. However, the path to the comprehensive agreement is still miles away.

“Ultimately, the phase one deal fell short of market expectations and is probably not enough to fully restore business confidence or generate a meaningful recovery in exports or investment.”

Technical Indicators

Overall, the bias in prices is: Upwards.

The projected upper bound is: 28,369.65.

The projected lower bound is: 26,714.01.

The projected closing price is: 27,541.83.

Candlesticks

A black body occurred (because prices closed lower 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 28 white candles and 22 black candles for a net of 6 white candles.

A long upper shadow occurred. This is typically a bearish signal (particularly when it occurs near a high price level, at resistance level, or when the security is overbought).

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 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 92.3468. This is an overbought reading. However, a signal is not generated until the Oscillator crosses below 80 The last signal was a buy 7 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 61.72. 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 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 162.This is an overbought reading. However, a signal isn’t generated until the indicator crosses below 100. The last signal was a buy 6 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 2 period(s) ago.

Rex Takasugi – TD Profile

HANG SENG INDEX closed down -179.670 at 27,508.090. Volume was 11% below average (neutral) and Bollinger Bands were 22% narrower than normal.

Open     High      Low     Close     Volume___
27,530.50027,715.93027,473.32027,508.0901,421,412,608
Technical Outlook 
Short Term: Overbought
Intermediate Term: Bullish
Long Term: Bearish
Moving Averages: 10-period     50-period     200-period
Close: 26,693.60 26,751.75 27,594.71
Volatility: 20 20 19
Volume: 1,492,305,024 1,525,096,064 1,727,591,040

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 0.3% below 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 0 periods.

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