Shanghai: SSE Composite Index (.SSEC) – Asia stocks plunge on virus fears, oil prices
Stock markets plunged around Asia on Monday, as panic selling set in with traders fretting over the economic impact of the new coronavirus and digesting a free-fall in the oil price.
By mid-morning, the benchmark Nikkei 225 index had dropped 5.10 percent or 1,058.06 points to 19,691.69, while the broader Topix index was off 5.01 percent or 73.69 points to 1,397.77.
Other markets in the region were also suffering with Hong Kong stocks down 3.8 percent at the open, Australia off more than five percent and equities in New Zealand and South Korea both down by just under three percent.
In China, the benchmark Shanghai Composite Index dived 1.56 percent while the benchmark Philippine stock exchange index opened down nearly four percent.
Driving the declines was a ferocious sell-off in the oil markets sparked by top exporter Saudi Arabia slashing prices — in some cases to unprecedented levels — after a bust-up with Russia over oil production.
The two main oil contracts were both down about 20 percent in morning Asian trade, with West Texas Intermediate sliding to around $32 a barrel and Brent crude to $36 a barrel.
The foreign exchange markets were also extremely volatile, with traders snapping up the yen — seen as a hedge against global instability — and selling off the dollar amid uncertainty over coronavirus in the United States.
The dollar fetched 104.15 yen in early Tokyo time, after dipping to around 103.83 yen in Sydney time, the lowest level since November 2016. That compares with 105.40 yen in New York late Friday.
Markets were not helped by data showing that the Japanese economy had declined more than initially thought — even before the outbreak of the coronavirus.
The country’s gross domestic product during the October-December quarter was revised down to a contraction of 1.8 percent, compared to an earlier estimate of 1.6 percent.
Overall, the bias in prices is: Sideways.
The projected upper bound is: 3,089.69.
The projected lower bound is: 2,793.94.
The projected closing price is: 2,941.82.
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 31 white candles and 19 black candles for a net of 12 white candles.
A falling window occurred (where the bottom of the previous shadow is above the top of the current shadow). This usually implies a continuation of a bearish trend. There have been 3 falling windows in the last 50 candles–this makes the current falling window even more bearish.
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 65.6305. 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 46.09. 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 23 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 -90. This is not a topping or bottoming area. The last signal was a sell 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 buy 3 period(s) ago.
Rex Takasugi – TD Profile
SSE COMPOSITE closed down -91.220 at 2,943.291. Volume was 80% above average (neutral) and Bollinger Bands were 1% narrower than normal.
Open High Low Close Volume___
Short Term: Neutral
Intermediate Term: Bullish
Long Term: Bearish
Moving Averages: 10-period 50-period 200-period
Close: 2,989.76 2,997.37 2,944.05
Volatility: 38 32 21
Volume: 40,152,408,064 28,835,528,704 20,328,146,944
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 down today (bearish) 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 0.0% below its 200-period moving average and is in an upward 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 bullish on .SSEC and have had this outlook for the last 2 periods.
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