Trade talk news lifts Hong Kong: HANG SENG INDEX (.HSI), Alibaba keeps soaring

Trade talk news lifts Hong Kong: HANG SENG INDEX (.HSI), Alibaba keeps soaring

Trade talk news lifts Hong Kong: HANG SENG INDEX (.HSI), Alibaba keeps soaring

Hong Kong shares closed with slight gains on Wednesday, in line with a broad advance across Asia on optimism over the China-US trade talks.

The Hang Seng index added 0.2 percent, to 26,954.

Shares of Alibaba, the Chinese e-commerce which was listed in Hong Kong on Tusday continued to be a favourite of investors, adding another 3 percent and closing at HK$193.

The secondary listing, aimed to raise US$11bn for the New York-listed firm, had got off to a rousing start on Tuesday, adding 6.6 percent to close at HK$188.

On th mainland, the Shanghai Composite Index fell 0.1 percent, to 2,903 and the Shenzhen Composite Index dropped 0.2 percent, to 1,602.

Expectations that China and the United States will soon reach an interim trade deal provided fresh impetus to Asian markets.

Tokyo ended 0.3 percent higher. Sydney jumped 0.9 percent and Singapore put on 0.1 percent, while Seoul and Taipei each added 0.3 percent.

Wellington climbed 0.7 percent, Manila jumped 1.7 percent, Mumbai put on 0.1 percent.

However, observers said that while the broad consensus is that the China and the US will tie up something soon, there is an underlying unease at the lack of detail that is causing uncertainty.

“We’re getting to the point where they need to show us the money,” said Michael Reynolds, investment strategy officer at Glenmede Trust Co. “Talk is one thing but an actual deal on paper, pen to paper, is what is going to dramatically change the market narrative.”

Technical Indicators

Overall, the bias in prices is: Sideways.

The projected upper bound is: 27,702.20.

The projected lower bound is: 26,198.98.

The projected closing price is: 26,950.59.

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 24 white candles and 26 black candles for a net of 2 black candles.

A long lower shadow occurred. This is typically a bullish signal (particularly when it occurs near a low price level, at a support level, or when the security is oversold).

A spinning top occurred (a spinning top is a candle with a small real body). Spinning tops identify a session in which there is little price action (as defined by the difference between the open and the close). During a rally or near new highs, a spinning top can be a sign that prices are losing momentum and the bulls may be in trouble.

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 73.2645. This is not an overbought or oversold reading. The last signal was a buy 6 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 52.09. 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 13 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 7 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 10 period(s) ago.

Rex Takasugi – TD Profile

HANG SENG INDEX closed up 40.080 at 26,954.000. Volume was 30% below average (neutral) and Bollinger Bands were 14% narrower than normal.

Open     High      Low     Close     Volume___
26,943.52026,974.27926,866.80126,954.0001,133,748,224
Technical Outlook 
Short Term: Neutral
Intermediate Term: Bearish
Long Term: Bearish
Moving Averages: 10-period     50-period     200-period
Close: 26,723.78 26,638.55 27,708.40
Volatility: 20 18 19
Volume: 1,489,603,584 1,523,070,976 1,757,394,176

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 2.7% below its 200-period moving average and is in an downward 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 bearish on .HSI and have had this outlook for the last 4 periods.

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