Hong Kong: HANG SENG INDEX (.HSI) traders remained cautious ahead of a highly anticipated meeting between U.S. President Donald Trump and Chinese leader Xi Jinping
Asian stocks fell in morning trade on Tuesday, as traders remained cautious ahead of a highly anticipated meeting between U.S. President Donald Trump and Chinese leader Xi Jinping.
China’s Shanghai Composite and the Shenzhen Component fell 1.6% and 1.1% respectively by 10:30 PM ET (02:30 GMT). Hong Kong’s Hang Seng Index was down 1.2%.
Japan’s Nikkei 225 dropped 0.5%. South Korea’s KOSPI was little changed.
Down under, Australia’s ASX 200 slipped 0.1%.
Due to a lack of directional drivers today, traders are turning their focus to the upcoming G-20 summit in Japan this weekend. Sentiment remained fragile as analysts do not expect much progress to be made during the meeting after the U.S. put five more Chinese firms under trade blacklist this week.
China’s Vice Minister of Commerce Wang Shouwen said Beijing wants the U.S. to stop “inappropriate actions” against Chinese firms.
“We hope the U.S. side, under the principles of free trade and the spirit of WTO (World Trade Organization) principles, can cancel these inappropriate measures against Chinese companies, and remove them from the entity list. This has benefits for both sides,” said Wang in a press conference on Monday.
Trump said he expects a good meeting with Xi, but warned earlier that China must return to concessions it made in earlier rounds of talks before the two sides could make a deal.
China’s Ministry of Commerce today released a statement and said the country’s Vice Premier Liu He had spoken to U.S. Treasury Secretary Steven Mnuchin and Trade Representative Robert Lighthizer on the phone this week.
They discussed trade and agreed to maintain communications, according to the statement.
Meanwhile, White House officials confirmed on Monday that Trump will also meet with Russia’s Vladimir Putin and Turkey’s Recep Tayyip Erdogan at the summit.
Overall, the bias in prices is: Sideways.
The projected upper bound is: 28,989.40.
The projected lower bound is: 27,272.96.
The projected closing price is: 28,131.18.
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 4 white candles and 6 black candles for a net of 2 black candles. During the past 50 bars, there have been 24 white candles and 26 black candles for a net of 2 black candles.
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 79.7764. This is not an overbought or oversold reading. The last signal was a sell 0 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 54.93. 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 12 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 75. This is not a topping or bottoming area. The last signal was a sell 0 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 12 period(s) ago.
Rex Takasugi – TD Profile
HANG SENG INDEX closed down -342.090 at 28,170.910. Volume was 21% below average (neutral) and Bollinger Bands were 20% wider than normal.
Open High Low Close Volume___
Short Term: Overbought
Intermediate Term: Bullish
Long Term: Bullish
Moving Averages: 10-period 50-period 200-period
Close: 27,835.76 28,408.65 27,443.69
Volatility: 22 19 22
Volume: 1,826,853,376 1,982,190,592 1,874,891,776
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 is currently 2.6% 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 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 4 periods.
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