Hong Kong: HANG SENG INDEX (.HSI) stocks have reached seven-month highs

Hong Kong: HANG SENG INDEX (.HSI) stocks have reached seven-month highs

Hong Kong: HANG SENG INDEX (.HSI) stocks have reached seven-month highs

Global markets and economies are watching in anticipation as two of the world’s largest economies engage in hard negotiations to finally settle their long-running trade disputes. With the recent turn of events pointing to a possible positive outcome in the US-China trade talks, global markets have reacted accordingly. Massive spikes and movements are seen with every announcement from both sides. As the latest round of talks kicks off in the United States, sentiments have gradually improved, which has resulted in boosted global market prices.

The recent increase in prices, on the other hand, was aided by optimism towards a possible resolution of the lengthy US-China trade talks and a globally tighter supply. Economists have remained positive that an amicable outcome of the trade talks would result in increased energy demand from China this year.

With positive comments being announced from both sides, global markets have rallied in response. Asian stock has reached seven-month highs, while European stocks have managed to remain in acceptable levels despite weakening manufacturing data and the ongoing fears of a possible no-deal Brexit. The DAX surged by around 1.2 percent, while the euro was pushed up to US$1.1250.

Overall, the bias in prices is: Upwards.

Note: this chart shows extraordinary price action to the upside.

The projected upper bound is: 30,710.56.

The projected lower bound is: 29,271.67.

The projected closing price is: 29,991.12.

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 31 white candles and 19 black candles for a net of 12 white 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 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 93.8732. This is an overbought reading. However, a signal is not generated until the Oscillator crosses below 80 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 67.59. 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 27 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 128.This is an overbought reading. However, a signal isn’t generated until the indicator crosses below 100. The last signal was a sell 10 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 -50.070 at 29,936.320. Volume was 7% above average (neutral) and Bollinger Bands were 6% wider than normal.

Open High Low Close Volume___
29,950.42030,050.91029,765.55129,936.3201,911,822,208

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

Moving Averages: 10-period 50-period 200-period
Close: 29,186.78 28,561.56 27,429.42
Volatility: 18 16 22
Volume: 1,979,285,120 1,911,178,624 1,858,761,088

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 9.1% above its 200-period moving average and is in an upward trend. Volatility is Our volume indicators reflect moderate flows of volume into .HSI (mildly bullish). Our trend forecasting oscillators are currently bullish on .HSI and have had this outlook for the last 2 periods.

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