Shanghai: SSE Composite Index (.SSEC) shares end up as investors keep the faith despite Trump’s mixed trade signals
Chinese shares rose on Thursday, lifted by renewed hopes that China and the United States may be closer to a “phase one” trade deal to end a bitter tariff war that has dragged on since the middle of last year.
At the close, the Shanghai Composite index was up 0.74% at 2,899.47. It has gained 1.48% since hitting more than three-month lows on Tuesday.
The blue-chip CSI300 index was up 0.77%, with its financial sector sub-index higher by 0.74%, the consumer staples sector up 0.24%, the real estate index down 0.11% and the healthcare sub-index up 0.96%.
U.S. President Donald Trump said talks with China were going “very well,” a day after spooking markets by saying a deal might have to wait until after the 2020 presidential election.
But a harsh response from Chinese officials and state media to the U.S. House of Representatives passing the Uighur Act of 2019, which calls for a tougher response to Beijing’s treatment of its Uighur Muslim minority, illustrates continued uncertainty in the countries’ relationship.
China warned passage of the bill would affect bilateral cooperation, clouding prospects for a near-term deal to end the trade war.
Overall, the bias in prices is: Downwards.
By the way, prices are vulnerable to a correction towards 2,930.30.
The projected upper bound is: 2,955.10.
The projected lower bound is: 2,839.84.
The projected closing price is: 2,897.47.
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 26 white candles and 24 black candles for a net of 2 white candles.
A rising window occurred (where the top of the previous shadow is below the bottom of the current shadow). This usually implies a continuation of a bullish trend. There have been 3 rising windows in the last 50 candles–this makes the current rising window even more bullish.
Three white candles occurred in the last three days. Although these candles were not big enough to create three white soldiers, the steady upward pattern is bullish.
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 58.5111. This is not an overbought or oversold reading. The last signal was a buy 13 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 46.71. 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 52 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 -2. This is not a topping or bottoming area. The last signal was a buy 0 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 18 period(s) ago.
Rex Takasugi – TD Profile
SSE COMPOSITE closed up 21.353 at 2,899.469. Volume was 11% below average (neutral) and Bollinger Bands were 50% narrower than normal.
Open High Low Close Volume___
Short Term: Neutral
Intermediate Term: Bearish
Long Term: Bearish
Moving Averages: 10-period 50-period 200-period
Close: 2,890.15 2,936.30 2,958.95
Volatility: 9 12 23
Volume: 14,044,544,000 14,645,199,872 22,943,592,448
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 gapped up today (bullish) 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.
SSE COMPOSITE is currently 2.0% below its 200-period moving average and is in an downward 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 .SSEC at a relatively equal pace (neutral). Our trend forecasting oscillators are currently bearish on .SSEC and have had this outlook for the last 41 periods.