Shanghai: SSE Composite Index (.SSEC) – Asian Stocks Mixed as COVID-19 Fight Goes On
Asian stock markets were mixed on Wednesday morning as the region continues to combat the COVID-19 pandemic.
Stocks halted two consecutive days of gains as the United Kingdom and New York City reported their highest death toll overnight. 731 people died from the virus in the city and the United Kingdom’s most prominent patient, Prime Minister Boris Johnson, remains in intensive care.
Japan’s Nikkei 225 rose 0.19% by 10:39 PM ET (3:39 AM GMT) despite Prime Minister Shinzo Abe formally declaring a state of emergency on Tuesday evening.
Neighboring South Korea’s KOSPI lost 0.23%, even as President Moon Jae-In announced an additional 36 trillion won ($29.5 billion) worth of cheap loans for exporters hard hit by the virus at a policy meeting with economic chiefs in the morning.
At the same meeting, Moon also announced an additional stimulus package of 17.7 trillion won.
Down Under, the S&P/ASX 200 fell 0.54% as S&P Global Ratings downgraded the country’s credit-rating outlook from stable to negative.
Hong Kong’s Hang Seng Index was down by 0.97% as the special administrative region extended its social distancing measures until April 23.
China’s Shanghai Composite was down 0.4 % while the Shenzhen Component was down 0.39% as the city of Wuhan, where the outbreak started, lifted its lockdown.
But the increased New York death toll is a stark reminder that the fight against COVID-19 is far from over, on both the economic and medical fronts, despite the falling number of new cases.
“As the quarter progresses, investors start to understand that everything we’re seeing is in the form of assistance and aid to just tide the economy over,” Bob Michele, global chief investment officer at JPMorgan (NYSE:JPM) Asset Management, told Bloomberg. “It’s not stimulus that gets the economy going at a much higher rate than where it is.”
Overall, the bias in prices is: Downwards.
By the way, prices are vulnerable to a correction towards 2,881.66.
The projected upper bound is: 2,972.52.
The projected lower bound is: 2,639.87.
The projected closing price is: 2,806.20.
A white body occurred (because prices closed higher than they opened).
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 30 white candles and 20 black candles for a net of 10 white candles.
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 88.5735. This is an overbought reading. However, a signal is not generated until the Oscillator crosses below 80 The last signal was a sell 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 48.85. 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 44 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 123.This is an overbought reading. However, a signal isn’t generated until the indicator crosses below 100. The last signal was a buy 10 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 buy 6 period(s) ago.
Rex Takasugi – TD Profile
SSE COMPOSITE closed down -8.886 at 2,811.877. Volume was 43% below average (neutral) and Bollinger Bands were 6% wider than normal.
Open High Low Close Volume___
Short Term: Overbought
Intermediate Term: Bearish
Long Term: Bearish
Moving Averages: 10-period 50-period 200-period
Close: 2,772.80 2,885.94 2,933.65
Volatility: 21 37 23
Volume: 22,596,534,272 30,622,588,928 20,976,160,768
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.
SSE COMPOSITE is currently 4.2% below its 200-period moving average and is in an downward 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 .SSEC at a relatively equal pace (neutral). Our trend forecasting oscillators are currently bearish on .SSEC and have had this outlook for the last 16 periods.