Hong Kong: HANG SENG INDEX (.HSI) traders bank on the chance of a US-China trade detente from the G20 meeting

Hong Kong: HANG SENG INDEX (.HSI) traders bank on the chance of a US-China trade detente from the G20 meeting

Hong Kong: HANG SENG INDEX (.HSI) traders bank on the chance of a US-China trade detente from the G20 meeting

The Hang Seng Index rose 1.3 per cent and the Shanghai Composite Index added 1.1 per cent for the first gain in five days. Tencent Holdings gained the most in almost two weeks in Hong Kong, while telecom and consumer companies led the pack of gainers in the mainland.

US President Donald Trump was hopeful of a breakthrough with his Chinese counterpart Xi Jinping over dinner on Saturday evening in Buenos Aires, Larry Kudlow, Trump’s top economic adviser, told reporters on Tuesday during a briefing before the Group of 20 meeting. But the US was also ready to impose more tariffs on Chinese imports if the upcoming talks fall apart, he said.

Traders’ attention was also gripped by comments by vice-chairman of the Fed Richard Clarida before chairman Jerome Powell’s speech on Wednesday. At the end of an address to a conference in New York, Clarida said he supported “gradual policy normalisation”.

The Hang Seng Index gained 350.60 points to 26,682.56, while the Hang Seng China Enterprises Index added 1.1 per cent. The Shanghai Composite index climbed 27.06 points to 2,601.74, snapping a four-day, 2.9 per cent loss.

Overall, the bias in prices is: Sideways.

The projected upper bound is: 27,812.80.

The projected lower bound is: 25,528.17.

The projected closing price is: 26,670.48.

Candlesticks

A white body occurred (because prices closed higher 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 23 white candles and 27 black candles for a net of 4 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 94.6655. This is an overbought reading. However, a signal is not generated until the Oscillator crosses below 80 The last signal was a sell 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 59.34. 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 32 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 165.This is an overbought reading. However, a signal isn’t generated until the indicator crosses below 100. The last signal was a sell 14 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 19 period(s) ago.

Rex Takasugi – TD Profile

HANG SENG INDEX closed up 350.600 at 26,682.561. Volume was 19% below average (neutral) and Bollinger Bands were 39% narrower than normal.

Open High Low Close Volume___
26,406.68026,705.30126,332.66026,682.5611,459,045,248

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

Moving Averages: 10-period 50-period 200-period
Close: 26,180.85 26,166.26 28,754.98
Volatility: 20 28 25
Volume: 1,350,247,936 1,830,359,680 1,993,188,864

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 is currently 7.2% 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 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 9 periods.

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