Positive US-China trade vibes are propelling Shanghai: SSE Composite Index (.SSEC) market higher

Positive US-China trade vibes are propelling Shanghai: SSE Composite Index (.SSEC)  market higher

Positive US-China trade vibes are propelling Shanghai: SSE Composite Index (.SSEC) market higher

Asian stocks advanced Monday, boosted by positive signals about a potential US-China trade deal.

Hong Kong’s Hang Seng Index opened up 1.1% and widened the gains to 1.9% in early trading. It’s the top performer so far among major indexes in the region.

Investors may also be paying attention to election results in Hong Kong. Pro-democracy candidates appear to have made major gains in the city’s District Council elections. The elections have been framed as a de facto referendum on the almost six months of ongoing protests in the semi-autonomous Chinese city.

Meanwhile, South Korea’sKospi index gained 1.2%. Japan’s Nikkei 225 also rose 0.9%, while China’s Shanghai Composite Index improved 0.7%.

On Friday, President Donald Trump told Fox News that the United States and China were “potentially very close” to reaching a deal.

Chinese President Xi Jinping also said Friday in Beijingthat he wanted to work out an agreement based on “mutual respect and equality,” according to news reports.

The Chinese government on Sunday calling for stronger protections of intellectual property rights. That kind of action, though, would address a key concern by the United States as the two countries negotiate a trade deal.

On the mainland, stocks also rose, though gains were curbed by losses for tech names after the U.S. Federal Communications Commission moved to bar Huawei Technologies from a government subsidy program.

The CSI300 index rose 0.3%, to 3,861.29 points at the end of the morning session, while the Shanghai Composite Index gained 0.4%, to 2,895.49 points.

Technical Indicators

Overall, the bias in prices is: Downwards.

By the way, prices are vulnerable to a correction towards 2,936.85.

The projected upper bound is: 2,966.77.

The projected lower bound is: 2,841.83.

The projected closing price is: 2,904.30.

Candlesticks

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

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 37.0955. This is not an overbought or oversold reading. The last signal was a buy 5 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 44.54. 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 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 -68. This is not a topping or bottoming area. The last signal was a buy 5 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

SSE COMPOSITE closed up 20.880 at 2,906.169. Volume was 9% above average (neutral) and Bollinger Bands were 24% narrower than normal.

Open     High      Low     Close     Volume___
2,885.6132,906.6092,880.6542,906.16917,858,742,272
Technical Outlook 
Short Term: Neutral
Intermediate Term: Bearish
Long Term: Bearish
Moving Averages: 10-period     50-period     200-period
Close: 2,907.06 2,955.70 2,948.48
Volatility: 11 13 23
Volume: 13,820,376,064 15,883,015,168 23,056,046,080

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

SSE COMPOSITE is currently 1.4% 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 33 periods.

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