Shanghai: SSE Composite Index (.SSEC) investors await concrete details from Beijing and Washington on their initial agreement to defuse the 17-month-long tariff war
China stocks took a breather on Wednesday from three sessions of gains, retreating from multi-month highs, as weary investors awaited concrete details from Beijing and Washington on their initial agreement to defuse the 17-month-long tariff war.
At the midday break, the Shanghai Composite index was down 0.1% at 3,020.06 points, trading a notch lower from its highest level since mid-September hit on Tuesday.
The blue-chip CSI300 index was almost unchanged from the previous close and hovering near its strongest level since April, also hit in the previous session.
CSI300′s financial sector sub-index rose 0.2%, the consumer staples sector was flat and the real estate index edged down 0.3%.
Chinese H-shares listed in Hong Kong rose 0.2%. The Hang Seng Index dipped 0.1% to 27,822.79, slightly lower from its highest level since late-July hit earlier in the session.
The smaller Shenzhen index gained 0.2% and the start-up board ChiNext Composite index was weaker by 0.3%.
The so-called “phase-one” trade deal between Washington and Beijing has been “absolutely completed,” a top White House adviser said on Monday, adding that U.S. exports to China will double under the agreement.
Kudlow’s remarks came after Chinese officials emphasized that the trade dispute has not been completely settled.
The Trump administration is finalising a set of narrow rules to limit exports of sophisticated technology to adversaries such as China, a document seen by Reuters shows.
China’s central bank on Wednesday lowered the interest rate on 14-day reverse repurchase agreements by five basis points, having unexpectedly trimmed the seven-day benchmark last month for the first time in more than four years.
China will take a targeted approach to boosting investment and will not resort to massive stimulus in its infrastructure push, the state planner said on Tuesday, as Beijing ramps up support to stabilise its slowing economy.
Beyond this week, however, equities will be shored by expectations of policy support, foreign investment inflows and progress in the trade talks, Greater Wall Securities’ analysts wrote in a note on Wednesday.
Overall, the bias in prices is: Upwards.
The projected upper bound is: 3,078.48.
The projected lower bound is: 2,959.30.
The projected closing price is: 3,018.89.
A black body occurred (because prices closed lower than they opened).
During the past 10 bars, there have been 8 white candles and 2 black candles for a net of 6 white candles. During the past 50 bars, there have been 28 white candles and 22 black candles for a net of 6 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 88.1471. This is an overbought reading. However, a signal is not generated until the Oscillator crosses below 80 The last signal was a buy 22 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 70.09. This is where it usually tops. The RSI usually forms tops and bottoms before the underlying security. A buy or sell signal is generated when the RSI moves out of an overbought/oversold area. The last signal was a sell 61 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 165.This is an overbought reading. However, a signal isn’t generated until the indicator crosses below 100. The last signal was a sell 4 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 8 period(s) ago.
Rex Takasugi – TD Profile
SSE COMPOSITE closed down -5.377 at 3,017.044. Volume was 48% above average (neutral) and Bollinger Bands were 9% wider than normal.
Open High Low Close Volume___
Short Term: Overbought
Intermediate Term: Bullish
Long Term: Bullish
Moving Averages: 10-period 50-period 200-period
Close: 2,947.49 2,937.23 2,966.16
Volatility: 12 13 21
Volume: 18,864,771,072 15,377,476,608 22,374,328,320
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 1.7% above its 200-period moving average and is in an upward trend. Volatility is Our volume indicators reflect moderate flows of volume into .SSEC (mildly bullish). Our trend forecasting oscillators are currently bullish on .SSEC and have had this outlook for the last 4 periods. Our momentum oscillator is currently indicating that .SSEC is currently in an overbought condition.