Shanghai: SSE Composite Index (.SSEC) – Asian shares sink after pandemic news
Asian shares plunged Thursday after the World Health Organization declared a coronavirus pandemic and indexes sank on Wall Street.
Japan’s benchmark Nikkei 225 dived 4.4% to 18,559.63. Australia’s S&P/ASX 200 dropped 7.4% to 5,304.60. South Korea’s Kospi dipped 4.7% to 1,817.87. Hong Kong’s Hang Seng lost 3.6% to 24,316.77, while the Shanghai Composite index shed 1.9% to 2,912.33.
Thailand’s benchmark plunged 9%. India’s Sensex swooned 7%.
“Some of the biggest markets, such as Hong Kong or Japan or Australia, are down around four to five percent. And we haven’t seen, you know, a significant buy-in interest yet, so traders are still in the get-out mode. They just want to have it in cash,” said Jackson Wong of Amber Hill Capital Ltd., in Hong Kong.
“So that’s a typical panic mode, but whether this panic mode will stop in the short term, it really will depend on how the virus incident goes forward,” Wong said.
In Japan, Prime Minister Shinzo Abe met with the central bank governor, who pledged to all he can to help support the economy, which contracted 7.1% in annual terms in the last quarter, before the virus outbreak even hit.
Bank of Japan Gov. Haruhiko Kuroda said the central bank “will take appropriate steps as needed.”
In other trading, benchmark U.S. crude lost $1.37 to $31.61 per barrel in electronic trading on the New York Mercantile Exchange. It lost $1.38 to $32.98 per barrel on Wednesday. Brent crude, the standard for international pricing, gave up $1.54 to $34.25 per barrel.
Overall, the bias in prices is: Downwards.
The projected upper bound is: 3,072.23.
The projected lower bound is: 2,772.38.
The projected closing price is: 2,922.30.
A black body occurred (because prices closed lower than they opened).
During the past 10 bars, there have been 4 white candles and 6 black candles for a net of 2 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 4 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 35.8368. This is not an overbought or oversold reading. The last signal was a sell 3 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 44.66. 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 26 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 -125.This is an oversold reading. However, a signal isn’t generated until the indicator crosses above -100. The last signal was a sell 3 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 0 period(s) ago.
Rex Takasugi – TD Profile
SSE COMPOSITE closed down -45.032 at 2,923.486. Volume was 30% above average (neutral) and Bollinger Bands were 14% 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: 2,979.40 2,996.14 2,944.61
Volatility: 41 33 21
Volume: 38,075,908,096 29,774,974,976 20,482,318,336
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 0.7% 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 5 periods.
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