Hong Kong: HANG SENG INDEX (.HSI) stocks rally on China-US trade talks renewal

Hong Kong: HANG SENG INDEX (.HSI) stocks rally on China-US trade talks renewal

Hong Kong: HANG SENG INDEX (.HSI) stocks rally on China-US trade talks renewal

Hong Kong stocks finished with healthy gains today as investors welcomed the resumption of China-US trade talks and brushed off violent demonstrations that hit the city overnight.

The Hang Seng Index rose 1.17 per cent, or 332.94 points, to 28,875.56.

The benchmark Shanghai Composite Index was marginally lower, inching down 0.96 points to 3,043.94, while the Shenzhen Composite Index, which tracks stocks on China’s second exchange, edged up 0.16 per cent, or 2.57 points, to 1,619.12.

Overall, the bias in prices is: Upwards.

The projected upper bound is: 29,739.34.

The projected lower bound is: 27,974.38.

The projected closing price is: 28,856.86.

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 24 white candles and 26 black candles for a net of 2 black candles.

A rising window occurred (where the top of the previous shadow is below the bottom of the current shadow). This usually implies a continuation of a bullish trend. There have been 5 rising windows in the last 50 candles–this makes the current rising window even more bullish.

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 91.6998. This is an overbought reading. However, a signal is not generated until the Oscillator crosses below 80 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 63.93. 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 16 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 107.This is an overbought reading. However, a signal isn’t generated until the indicator crosses below 100. The last signal was a sell 4 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 16 period(s) ago.

Rex Takasugi – TD Profile

HANG SENG INDEX closed up 332.941 at 28,875.561. Volume was 9% above average (neutral) and Bollinger Bands were 41% wider than normal.

Open High Low Close Volume___
28,904.03928,959.06128,768.53928,875.5612,175,703,808

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

Moving Averages: 10-period     50-period     200-period
Close: 28,368.56 28,300.60 27,454.17
Volatility: 19 20 22
Volume: 1,805,978,880 1,976,963,840 1,880,308,864

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 gapped up today (bullish) on normal volume. Possibility of a Runaway Gap which usually signifies a continuation of the trend. Four types of price gaps exist – Common, Breakaway, Runaway, and Exhaustion. Gaps acts as support/resistance.
HANG SENG INDEX is currently 5.2% above 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 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 8 periods.

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