Hong Kong: HANG SENG INDEX (.HSI) was up 248.16 points or 0.88 percent at 28,607.30 points

Hong Kong: HANG SENG INDEX (.HSI) was up 248.16 points or 0.88 percent at 28,607.30 points

Hong Kong: HANG SENG INDEX (.HSI) was up 248.16 points or 0.88 percent at 28,607.30 points

Investors risk sentiments were subdued amid escalating U. S.-China trade dispute raised concerns about the outlook for global economic growth. China said it will impose 25% tariffs on an additional $16 billion worth of imports from the U. S. from Aug. 23, matching Washington’s latest move in the trade war.

Hong Kong’s main Hang Seng index ended higher on Thursday, with investors buying high-tech shares amid talks of possible government support for Chinese technology companies.

The Hang Seng index was up 248.16 points or 0.88 percent at 28,607.30 points. The Hang Seng China Enterprises index rose 1.09 percent to 11,019.93.

The sub-index of the Hang Seng tracking energy shares dipped 0.4 percent, the property sector was flat, and the financial sector was 1.07 percent higher.

Overall, the bias in prices is: Downwards.

The projected upper bound is: 29,476.22.

The projected lower bound is: 27,663.29.

The projected closing price is: 28,569.76.

Candlesticks

A white body occurred (because prices closed higher 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 24 white candles and 26 black candles for a net of 2 black candles.

An engulfing bullish line occurred (where a white candle’s real body completely contains the previous black candle’s real body). The engulfing bullish pattern is bullish during a downtrend. It then signifies that the momentum may be shifting from the bears to the bulls.

If the engulfing bullish pattern occurs during an uptrend (which appears to be the case with HANG SENG INDEX), it may be a last engulfing top which indicates a top. The test to see if this is the case is if the next candle closes below the top of the current (white) candle’s real body.

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 76.3784. This is not an overbought or oversold reading. The last signal was a buy 2 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 51.25. 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 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 27. This is not a topping or bottoming area. The last signal was a buy 3 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 0 period(s) ago.

Rex Takasugi – TD Profile

HANG SENG INDEX closed up 248.160 at 28,607.301. Volume was 23% below average (neutral) and Bollinger Bands were 28% narrower than normal.

Open High Low Close Volume___
28,260.50028,728.17028,192.81128,607.3011,493,002,240

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

Moving Averages: 10-period 50-period 200-period
Close: 28,288.69 29,129.74 30,017.58
Volatility: 19 20 21
Volume: 1,554,144,384 2,019,314,048 2,162,999,552

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 4.7% below 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 6 periods.

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