Hong Kong: HANG SENG INDEX (.HSI) struggle as growth worries overshawow trade-deal hopes

Hong Kong: HANG SENG INDEX (.HSI) struggle as growth worries overshawow trade-deal hopes

Hong Kong: HANG SENG INDEX (.HSI) struggle as growth worries overshawow trade-deal hopes

Asian market finished mixed Monday as hopes over a trade deal mixed with worries about global growth.

The Shanghai Composite index SHCOMP, -0.34% closed down 0.3%. Japan’s Nikkei 225 index NIK, +1.37% jumped 1.4% and the Kospi in South Korea SEU, +0.42% added 0.4%.

Hong Kong’s Hang Seng HSI, -0.33% picked up 1.1% to 30,245.00, while Australia’s S&P ASX 200 XJO, +0.00% lost 0.1%. Stocks rose in Taiwan.

On Saturday, U.S. Treasury Secretary Steven Mnuchin told reporters that the U.S. and China were moving closer to an agreement on trade.

Speaking on the sidelines of the International Monetary Fund and World Bank spring meetings, Mnuchin said the U.S. and China had held phone discussions last week and he wasn’t sure if more face-to-face meetings would be needed. He did not give a timeframe for when negotiations might be wrapped up, but his comments fueled hopes that a wide-ranging dispute between the world’s two biggest economies could soon be put to rest.

Overall, the bias in prices is: Upwards.

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

The projected upper bound is: 30,565.03.

The projected lower bound is: 29,147.58.

The projected closing price is: 29,856.30.

Candlesticks

A big black candle occurred. This is bearish, as prices closed significantly lower than they opened. If the candle appears when prices are “high,” it may be the first sign of a top. If it occurs when prices are confronting an overhead resistance area (e.g., a moving average, trendline, or price resistance level), the long black candle adds credibility to the resistance. Similarly, if the candle appears as prices break below a support area, the long black candle confirms the failure of the support area.
During the past 10 bars, there have been 5 white candles and 5 black candles. During the past 50 bars, there have been 30 white candles and 20 black candles for a net of 10 white 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 25.7937. This is not an overbought or oversold reading. The last signal was a sell 2 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 60.27. 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 3 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 56. This is not a topping or bottoming area. The last signal was a sell 3 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 8 period(s) ago.

Rex Takasugi – TD Profile

HANG SENG INDEX closed down -99.039 at 29,810.721. Volume was 13% above average (neutral) and Bollinger Bands were 17% wider than normal.

Open High Low Close Volume___
30,119.85030,280.11929,810.72129,810.7212,072,822,912

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

Moving Averages: 10-period 50-period 200-period
Close: 29,902.35 28,883.59 27,436.25
Volatility: 14 16 22
Volume: 2,047,494,272 1,943,689,600 1,844,374,528

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 8.7% above its 200-period moving average and is in an upward trend. Volatility is low 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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