Hong Kong: HANG SENG INDEX (.HSI) stocks declined as tensions between the United States and China worsened

Hong Kong: HANG SENG INDEX (.HSI) stocks declined as tensions between the United States and China worsened

Hong Kong: HANG SENG INDEX (.HSI) stocks declined as tensions between the United States and China worsened

Asian stocks declined Wednesday as tensions between the United States and China worsened.

Japan’s Nikkei 225 (N225) fell 0.8%. Hong Kong’s Hang Seng Index (HSI) dropped 0.3%, while China’s Shanghai Composite Index (SHCOMP) declined 0.1%.

Markets in South Korea were closed for a public holiday.

Asian stocks rose earlier in the week ahead of scheduled trade talks between top US and Chinese negotiators in Washington on Thursday and Friday. But renewed strains between the two sides have overshadowed those discussions.

On Tuesday, US Secretary of State Mike Pompeo announced visa restrictions on Chinese officials suspected of being involved in the detention and human rights abuses of millions of Uyghur Muslims and other minority groups in China’s Xinjiang region.

That came a day after the US State Department blacklisted 28 Chinese entities over similar allegations.

Those moves have angered Beijing.

“We urge the US to correct its mistakes at once and stop its interference in China’s internal affairs,” the Chinese embassy in the United States said on Twitter.

Some of the Chinese tech companies on the US blacklist rebounded Wednesday. Meiya Pico, a digital forensics firm, rallied 4.6% in Shenzhen after a 1.6% loss Tuesday.

IFlytek, a voice recognition software developer, was up about 1.5% in Shenzhen after falling 2.7% Tuesday.

Both companies have said that the blacklist will not have a major effect on their operations.

Surveillance camera makers Hikvision and Dahua Technology, meanwhile, have suspended trading of their shares since Tuesday.

Technical Indicators

Overall, the bias in prices is: Downwards.

By the way, prices are vulnerable to a correction towards 26,521.28.

The projected upper bound is: 26,495.98.

The projected lower bound is: 24,772.70.

The projected closing price is: 25,634.34.

Candlesticks

A black body occurred (because prices closed lower than they opened).
During the past 10 bars, there have been 4 white candles and 6 black candles for a net of 2 black candles. During the past 50 bars, there have been 19 white candles and 31 black candles for a net of 12 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 32.1497. This is not an overbought or oversold reading. The last signal was a buy 5 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 37.02. 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 35 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 -110.This is an oversold reading. However, a signal isn’t generated until the indicator crosses above -100. The last signal was a buy 5 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 sell 10 period(s) ago.

Rex Takasugi – TD Profile

HANG SENG INDEX closed down -210.590 at 25,682.811. Volume was 3% below average (neutral) and Bollinger Bands were 12% narrower than normal.

Open     High      Low     Close     Volume___
25,736.88125,866.84025,656.66025,682.8111,588,334,464
Technical Outlook 
Short Term: Neutral
Intermediate Term: Bearish
Long Term: Bearish
Moving Averages: 10-period     50-period     200-period
Close: 25,986.56 26,263.01 27,650.55
Volatility: 12 21 19
Volume: 1,472,963,328 1,732,293,504 1,778,813,952

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 7.1% below its 200-period moving average and is in an downward 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 volume flowing into and out of .HSI at a relatively equal pace (neutral). Our trend forecasting oscillators are currently bearish on .HSI and have had this outlook for the last 2 periods.

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