Hong Kong: HANG SENG INDEX (.HSI) up, Shanghai down; Nikkei closed for 10-day holiday

Hong Kong: HANG SENG INDEX (.HSI) up, Shanghai down; Nikkei closed for 10-day holiday

Hong Kong: HANG SENG INDEX (.HSI) up, Shanghai down; Nikkei closed for 10-day holiday

Asian markets traded mixed Monday, following a better-than-expected U.S. GDP report on Friday and ahead of a new round of U.S.-China trade talks.

On Friday, data showed the U.S. economy grew 3.2% in the first quarter, higher than analysts’ expectations. That was thanks in part to the stockpiling of goods, although it was not immediately clear how, since data showed both domestic production and imports fell in the first three months of the year. On Wall Street, the benchmark Standard & Poor’s 500 index SPX, +0.18% hit a new high Friday while the Dow Jones Industrial Average DJIA, +0.06% also eked out a gain but ended the week down.

U.S. trade representative Robert Lighthizer and Treasury Secretary Steven Mnuchin will lead a U.S. delegation to China on Tuesday to resume trade negotiations. Those will be followed by talks in Washington starting May 8. There have been reports that negotiations are in their final stage, and a final deal may be signed in late May or early June, putting an end to the yearlong tariff war between the world’s two largest economies.

The Fed board meets Tuesday and is due to issue a statement on its interest rate outlook Wednesday.

“Traders will be nervously watching for changes in its dovish outlook,” said Jeffrey Halley of OANDA in a report. “My guess is these nerves are misplaced, and the Fed will happily keep its powder dry with the optionality to cut if needed.”

Hong Kong’s Hang Seng Index HSI, +0.97% finished up 0.9%, while the Shanghai SHCOMP, -0.77% fell 0.8%. China’s smaller-cap Shenzhen Composite 399106, -2.41% sank 2.4%.

Overall, the bias in prices is: Upwards.

The projected upper bound is: 30,643.91.

The projected lower bound is: 29,197.52.

The projected closing price is: 29,920.71.

Candlesticks

A white body occurred (because prices closed higher than they opened).
During the past 10 bars, there have been 5 white candles and 5 black candles. During the past 50 bars, there have been 27 white candles and 23 black candles for a net of 4 white 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 27.1119. This is not an overbought or oversold reading. The last signal was a buy 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 57.37. 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 11 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 -58. This is not a topping or bottoming area. The last signal was a buy 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 6 period(s) ago.

Rex Takasugi – TD Profile

HANG SENG INDEX closed up 287.801 at 29,892.811. Volume was 29% below average (neutral) and Bollinger Bands were 23% narrower than normal.

Open High Low Close Volume___
29,730.85029,917.10929,639.38129,892.8111,289,399,168

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

Moving Averages: 10-period 50-period 200-period
Close: 29,875.50 29,178.97 27,488.31
Volatility: 11 16 22
Volume: 1,833,402,496 1,971,579,648 1,816,471,424

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 8.7% above its 200-period moving average and is in an upward trend. Volatility is extremely low when compared to the average volatility over the last 10 periods. There is a good possibility that there will be an increase in volatility along with sharp price fluctuations in the near future. 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 16 periods.

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