Hong Kong: HANG SENG INDEX (.HSI) US President Donald Trump has said China “broke the deal” in trade talks, ramping up hostilities ahead of negotiations between the two sides
AGENCIES NEW YORK US President Donald Trump has said China “broke the deal” in trade talks, ramping up hostilities ahead of negotiations between the two sides.
The comments came as Beijing said it would retaliate with “necessary countermeasures” if the US raises tariffs on Chinese products. Mr Trump has vowed to more than double tariffs on $200bn (£152bn) of Chinese goods on Friday. Despite that, the two sides are due to hold trade talks in the US on Thursday.
The Chinese delegation for the Washington talks is led by Vice-Premier Liu He, who oversees the economy and is one of the most powerful officials in China. Ahead of the discussions, Mr Trump accused China’s leaders of breaking the deal the US was negotiating on trade.
“They broke the deal… They can’t do that. So they’ll be paying,” Mr Trump told supporters at a campaign rally in Florida. He said if the two sides do not make a deal, there was “nothing wrong with taking in more than $100bn a year”.
It had seemed that way – last week White House officials had said progress was being made. But then on Sunday, in a move that reportedly surprised China, Mr Trump said on Twitter that the US would raise tariffs on $200bn worth of Chinese goods this week and could introduce fresh tariffs.
US Trade Representative Robert Lighthizer later accused China of backtracking on commitments in trade talks. However, he insisted a deal with Beijing was still possible.
What exactly prompted Mr Trump’s threat or why he says China “broke the deal” is not clear. Sources told Reuters news agency that last week China returned a draft agreement with changes that undermined its pledges to address US demands such on issues as intellectual property rights and currency manipulation.
The Chinese commerce ministry denied backtracking and said it “keeps its promises”. Tariffs are taxes paid by importers on foreign goods, so a 25% tariff imposed by the US on Chinese goods would be paid by American companies.
The escalation of the trade war has sent waves across financial markets. Earlier in the week, global stock markets fell sharply in response to the prospect of higher tariffs, and investors remain cautious.
The Hang Seng index was down more than 2% on Thursday and the Shanghai Composite had shed nearly 1.5%.
Overall, the bias in prices is: Downwards.
The projected upper bound is: 29,129.99.
The projected lower bound is: 27,471.94.
The projected closing price is: 28,300.96.
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 6 white candles and 4 black candles for a net of 2 white candles. During the past 50 bars, there have been 26 white candles and 24 black candles for a net of 2 white candles.
A falling window occurred (where the bottom of the previous shadow is above the top of the current shadow). This usually implies a continuation of a bearish trend. There have been 4 falling windows in the last 50 candles–this makes the current falling window even more bearish.
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 12.1402. This is an oversold reading. However, a signal is not generated until the Oscillator crosses above 20 The last signal was a buy 7 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 32.99. 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 18 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 -219.This is an oversold reading. However, a signal isn’t generated until the indicator crosses above -100. The last signal was a buy 7 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 sell 13 period(s) ago.
Rex Takasugi – TD Profile
HANG SENG INDEX closed down -692.129 at 28,311.070. Volume was 60% above average (neutral) and Bollinger Bands were 1% wider than normal.
Open High Low Close Volume___
Short Term: Oversold
Intermediate Term: Bearish
Long Term: Bullish
Moving Averages: 10-period 50-period 200-period
Close: 29,465.96 29,313.85 27,518.65
Volatility: 25 18 22
Volume: 1,876,626,432 2,013,416,064 1,826,377,216
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 gapped down today (bearish) on normal volume. Possibility of a Runaway Gap which usually signifies a continuation of the trend. Four types of price gaps exist – Common, Breakaway, Runaway, and Exhaustion. Gaps acts as support/resistance.
HANG SENG INDEX is currently 2.9% above its 200-period moving average and is in an downward trend. Volatility is extremely high when compared to the average volatility over the last 10 periods. There is a good possibility that volatility will decrease and prices will stabilize in the near term. Our volume indicators reflect volume flowing into and out of .HSI at a relatively equal pace (neutral). Our trend forecasting oscillators are currently bearish on .HSI and have had this outlook for the last 2 periods.