Hong Kong: HANG SENG INDEX (.HSI) US imposed fresh tariffs on $200 billion worth of imports from China

Hong Kong: HANG SENG INDEX (.HSI) US imposed fresh tariffs on $200 billion worth of imports from China

Hong Kong: HANG SENG INDEX (.HSI) US imposed fresh tariffs on $200 billion worth of imports from China

After the US imposed fresh tariffs on $200 billion worth of imports from China, the regional stock markets rose instead of falling.

The Hang Seng Index was up 2.4 percent last week while the Shanghai Stock Exchange Composite Index had an even bigger rise, up more than 4 percent.

Don’t you think this was a bit abnormal?

But, as seen last week, the problem of funds during the trade war was not only toned down, but also, more funds flowed back to the stock markets in Asia in August.

Also, the escalation of the trade war has also been limited.

In the latest round, the US imposed only 10 percent tariffs rather than the expected 25 percent while China’s retaliatory action was not as serious as the market had feared.

And so with investors betting that the end of the trade war was near, it’s unsurprising that stock markets soared in the region.

Just a month ago, investors were worried that the economic and currency crises in emerging markets like Argentina and Turkey would spread to the rest of the region.

Overall, the bias in prices is: Downwards.

By the way, prices are vulnerable to a correction towards 28,263.97.

The projected upper bound is: 28,826.43.

The projected lower bound is: 27,057.85.

The projected closing price is: 27,942.14.

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 22 white candles and 28 black candles for a net of 6 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 92.2226. This is an overbought reading. However, a signal is not generated until the Oscillator crosses below 80 The last signal was a sell 3 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 56.62. 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 6 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 133.This is an overbought reading. However, a signal isn’t generated until the indicator crosses below 100. The last signal was a buy 6 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 3 period(s) ago.

Rex Takasugi – TD Profile

HANG SENG INDEX closed up 475.910 at 27,953.580. Volume was 49% above average (neutral) and Bollinger Bands were 24% wider than normal.

Open High Low Close Volume___
27,712.35027,965.96127,536.27027,953.5802,863,101,184

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

Moving Averages: 10-period 50-period 200-period
Close: 27,053.80 27,830.47 29,797.95
Volatility: 23 20 22
Volume: 1,975,011,584 1,768,154,624 2,149,500,160

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 6.2% 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 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 0 periods. Our momentum oscillator has set a new 14-period high while the security price has not. This is a bullish divergence.

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