Shanghai: SSE Composite Index (.SSEC) stocks slip as new coronavirus cases near six-week high
China stocks dipped on Monday, as the country’s new daily coronavirus cases approached a near six-week high.
At the midday break, the Shanghai Composite index was down 0.33% at 2,787.28 points.
China’s blue-chip CSI300 index was down 0.25%, with its financial sector sub-index lower by 0.54%, the consumer staples sector down 0.6%, the real estate index up 0.27% and the healthcare sub-index up 0.71%.
The smaller Shenzhen index was down 0.56% and the start-up board ChiNext Composite index was weaker by 1.24%.
China’s northeast Heilongjiang province, which borders Russia, has become the new battleground against the coronavirus as authorities reported the highest number of new daily cases in nearly six weeks, driven by infected travellers from overseas.
New bank lending in China rose sharply to 2.85 trillion yuan ($405 billion) in March, with total social financing hitting a record, as the central bank pumped in more liquidity and cut funding costs to support the coronavirus-ravaged economy.
“March data demonstrated the government has been quietly loosening policy more than what it may appear by looking at the magnitude of rate and RRR cuts,” Goldman Sachs said in a research note, adding that it reflected a preference for policy flexibility amid uncertainties from the pandemic.
The yuan was quoted at 7.0468 per U.S. dollar, 0.13% weaker than the previous close of 7.0375.
The largest percentage gainers in the main Shanghai Composite index were Liuzhou Liangmianzhen Co Ltd, up 10.12%, followed by Shanghai Lonyer Fuels Co Ltd, gaining 10.06%, and Shanghai Originaldow Advanced Compounds Co Ltd, rising 10%.
The largest percentage losses in the Shanghai index were Jinjian Cereals Industry Co Ltd, down 9.971%, followed by Baotou Huazi Industry Co Ltd, losing 9.963%, and Nanjing Textiles Import & Export Corp Ltd , falling 9.926%.
Overall, the bias in prices is: Downwards.
The projected upper bound is: 2,939.04.
The projected lower bound is: 2,614.11.
The projected closing price is: 2,776.57.
A black body occurred (because prices closed lower 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 30 white candles and 20 black candles for a net of 10 white candles.
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 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 61.8971. This is not an overbought or oversold reading. The last signal was a sell 0 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 45.43. 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 47 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 20. This is not a topping or bottoming area. The last signal was a sell 1 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 9 period(s) ago.
Rex Takasugi – TD Profile
SSE COMPOSITE closed down -16.138 at 2,780.493. Volume was 38% below average (neutral) and Bollinger Bands were 41% narrower 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: 2,781.58 2,872.28 2,932.38
Volatility: 19 36 23
Volume: 22,416,812,032 30,619,736,064 21,082,617,856
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 5.2% 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 .SSEC at a relatively equal pace (neutral). Our trend forecasting oscillators are currently bearish on .SSEC and have had this outlook for the last 19 periods.