Hong Kong: HANG SENG INDEX (.HSI) stocks fall as new tariffs kick in

Hong Kong: HANG SENG INDEX (.HSI) stocks fall as new tariffs kick in

Hong Kong: HANG SENG INDEX (.HSI) stocks fall as new tariffs kick in

China’s stock markets fell on Tuesday morning in their first trading session after fresh U.S. tariffs on $200 billion worth of Chinese imports kicked in on Monday, prompting retaliatory tariffs on $60 billion of U.S. imports to China.

At the midday break, the Shanghai Composite index was down 21.15 points or 0.76 percent at 2,776.33. China’s blue-chip CSI300 index was down 1.12 percent, with its financial sector sub-index lower by 1.7 percent, the consumer staples sector down 1 percent and the healthcare sub-index down 0.13 percent.

Chinese property developers plunged, with the real estate sub-index losing 4.5 percent after six provinces were told to decide whether to retain or scrap a property pre-sale system that enables developers to secure funds before project completion.

Property shares had fallen sharply in Hong Kong on Monday on the prospect of the system being scrapped.

Overall, the bias in prices is: Downwards.

By the way, prices are vulnerable to a correction towards 28,241.73.

The projected upper bound is: 28,382.11.

The projected lower bound is: 26,575.07.

The projected closing price is: 27,478.59.

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 22 white candles and 28 black candles for a net of 6 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 82.5783. This is an overbought reading. However, a signal is not generated until the Oscillator crosses below 80 The last signal was a sell 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 50.15. 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 7 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 96. This is not a topping or bottoming area. The last signal was a sell 0 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 4 period(s) ago.

Rex Takasugi – TD Profile

HANG SENG INDEX closed down -454.189 at 27,499.391. Volume was 19% below average (neutral) and Bollinger Bands were 18% wider than normal.

Open High Low Close Volume___
27,783.85027,783.85027,425.01027,499.3911,557,814,144

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

Moving Averages: 10-period 50-period 200-period
Close: 27,142.40 27,809.67 29,789.56
Volatility: 24 21 22
Volume: 1,919,867,776 1,773,751,168 2,144,735,104

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 7.7% 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 1 periods.

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