Hong Kong: HANG SENG INDEX (.HSI) U.S. and North Korean leaders cut short their widely-watched summit

Hong Kong: HANG SENG INDEX (.HSI) U.S. and North Korean leaders cut short their widely-watched summit

Hong Kong: HANG SENG INDEX (.HSI) U.S. and North Korean leaders cut short their widely-watched summit

The Hong Kong stock market fell on waning hopes for a speedy de-escalation to the Sino-U.S. tariffs tussle, and after the U.S. and North Korean leaders cut short their widely-watched summit.

At the close of trade, the Hang Seng index was down 0.4 percent at 28,633.18. The Hang Seng China Enterprises index fell 0.8 percent. But the Hang Seng is up 2.5 pct for the month. H-shares rose 3 percent in February.

The sub-index of the Hang Seng tracking energy shares dipped 1 percent, the IT sector lost 0.8 percent, while the financial sector ended 0.2 percent higher, and the property sector closed down 1.4 percent.

U.S. President Donald Trump said on Thursday he walked away from talks with Kim Jong Un, North Korea’s leader, as the two sides failed to reach an agreement on removing U.S. sanctions.

The news came just a day after India and Pakistan said they both shot down each other’s fighter jets, prompting world powers to urge restraint. ** “The external factors are pressuring the (Hong Kong) market,” said Patrick Yiu, managing director at CASH Asset Management in Hong Kong. “People also sense that things could still change in U.S.-China talks before they sign a trade agreement.”

U.S. Trade Representative Robert Lighthizer on Wednesday cautioned that much work was still needed to nail down a U.S.-China trade agreement, and that the United States will need to maintain the threat of tariffs on Chinese goods for years even if Washington and Beijing strike a deal. 

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 27,519.63.

The projected upper bound is: 29,477.16.

The projected lower bound is: 27,887.06.

The projected closing price is: 28,682.11.

Candlesticks

A black body occurred (because prices closed lower than they opened).
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 30 white candles and 20 black candles for a net of 10 white candles.

Three black candles occurred in the last three days. Although these candles were not big enough to create three black crows, the steady downward pattern is bearish.

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 53.5697. 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 63.06. 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 2 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 64. This is not a topping or bottoming area. The last signal was a sell 0 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 sell 0 period(s) ago.

Rex Takasugi – TD Profile

HANG SENG INDEX closed down -124.260 at 28,633.180. Volume was 21% above average (neutral) and Bollinger Bands were 26% narrower than normal.

Open High Low Close Volume___
28,719.71128,917.49028,571.13128,633.1802,151,230,464

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

Moving Averages: 10-period 50-period 200-period
Close: 28,555.82 27,091.37 27,661.96
Volatility: 18 19 23
Volume: 2,183,045,632 1,754,702,848 1,850,025,856

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 3.5% above 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 30 periods.

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