Hong Kong: HANG SENG INDEX (.HSI) Trump adviser insists deal ‘done’ as China sounds cautious
Stocks in Hong Kong hit their highest level since late July on Wednesday amid expectation of a ‘phase one’ trade deal between Beijing and Washington, but pared gains as investors awaited further details.
At the close of trade, the Hang Seng index was up 0.2% to 27,884.21, off its earlier peak – the highest level since late July. The Hang Seng China Enterprises index was up 0.5%.
The sub-index of the Hang Seng tracking energy shares rose 1.6%, the IT sector was up 0.5%, the financial sector was flat, and the property sector fell 0.2%.
Top White House adviser Larry Kudlow said on Monday that a so-called “phase-one” trade deal between the United States and China had been “absolutely completed”, and that U.S. exports to China would double under the agreement.
However, Chinese officials earlier said the dispute had not been completely settled.
Unrest in Hong Kong has led to as much as $5 billion of capital outflows from investment funds since April, the Bank of England said.
The Hong Kong Monetary Authority, the city’s central bank, argued this did not necessarily mean the money had left the city’s banking system.
China’s main Shanghai Composite index and the blue-chip CSI300 index both ended down 0.2%, snapping three straight sessions of gains.
Overall, the bias in prices is: Upwards.
Note: this chart shows extraordinary price action to the upside.
By the way, prices are vulnerable to a correction towards 26,921.21.
The projected upper bound is: 28,758.74.
The projected lower bound is: 27,097.74.
The projected closing price is: 27,928.24.
A black body occurred (because prices closed lower 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 28 white candles and 22 black candles for a net of 6 white 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 91.4155. This is an overbought reading. However, a signal is not generated until the Oscillator crosses below 80 The last signal was a buy 9 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 65.90. 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 28 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 134.This is an overbought reading. However, a signal isn’t generated until the indicator crosses below 100. The last signal was a buy 8 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 4 period(s) ago.
Rex Takasugi – TD Profile
HANG SENG INDEX closed up 40.500 at 27,884.211. Volume was 14% above average (neutral) and Bollinger Bands were 4% 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: 27,021.01 26,834.79 27,586.40
Volatility: 17 20 19
Volume: 1,539,372,160 1,533,116,288 1,723,417,216
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 1.1% 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 2 periods.
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