Hong Kong: HANG SENG INDEX (.HSI) Trade War will bring about more uncertainty
The recent rally was just a technical rebound, the rebound is over. China’s yuan has tumbled more than 6 per cent over the past three months, making it the worst performer among currencies in Asia.
The Hang Sang Index ended down 0.98 per cent, or 275.5 points, to 27,888.55. The Hang Seng China Enterprises Index, which tracks Hong Kong-listed Chinese companies, dropped 0.84 per cent, or 92.03 points, to 10,875.58.
On Thursday US President Donald Trump announced plans to move ahead with US$200 billion worth of tariffs on Chinese imports next week, heightening fears of an escalating trade war between the two economic giants.
Overall, the bias in prices is: Downwards.
The projected upper bound is: 28,673.63.
The projected lower bound is: 27,047.17.
The projected closing price is: 27,860.40.
A white body occurred (because prices closed higher than they opened).
During the past 10 bars, there have been 7 white candles and 3 black candles for a net of 4 white candles. During the past 50 bars, there have been 24 white candles and 26 black candles for a net of 2 black candles.
A falling window occurred (where the bottom of the previous shadow is above the top of the current shadow). This usually implies a continuation of a bearish trend. There have been 4 falling windows in the last 50 candles–this makes the current falling window even more bearish.
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.
One method of interpreting the Stochastic Oscillator is looking for overbought areas (above 80) and oversold areas (below 20). The Stochastic Oscillator is 57.0185. This is not an overbought or oversold reading. The last signal was a sell 1 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 46.45. 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 44 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 13. This is not a topping or bottoming area. The last signal was a sell 1 period(s) ago.
The Moving Average Convergence/Divergence indicator (MACD) gives signals when it crosses its 9 period signal line. The last signal was a buy 6 period(s) ago.
Rex Takasugi – TD Profile
HANG SENG INDEX closed down -275.500 at 27,888.551. Volume was 5% above average (neutral) and Bollinger Bands were 13% narrower than normal.
Open High Low Close Volume___
Short Term: Neutral
Intermediate Term: Bullish
Long Term: Bearish
Moving Averages: 10-period 50-period 200-period
Close: 27,983.27 28,261.43 29,967.41
Volatility: 18 18 21
Volume: 1,697,499,392 1,848,824,064 2,144,148,480
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.
HANG SENG INDEX gapped down today (bearish) 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 6.9% below its 200-period moving average and is in an upward trend. Volatility is relatively normal 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 2 periods.