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Shanghai: SSE Composite Index (.SSEC) – Asian stocks mixed as economic toll of virus worsens

Shanghai: SSE Composite Index (.SSEC) – Asian stocks mixed as economic toll of virus worsens

Asian stocks were mixed Thursday after a White House warning that as many as 240,000 Americans might die of the coronavirus sent Wall Street tumbling and signs of the outbreak’s global economic cost increased.

Benchmarks in Tokyo and Sydney declined but losses were smaller than Wall Street’s 4.4% overnight fall. Shanghai opened down but gained 1% while Seoul advanced 2.4%.

The U.S. warning added to anxiety among investors who are trying to figure out how long and deep this history-making global economic downturn might be.

Traders say markets will be turbulent until numbers of new cases decline, but Pan said that “still looks to be a distance away.”

The White House jolted financial markets with its announced Wednesday that anywhere from 100,000 to 240,000 Americans might die from the virus even if the country avoids shopping trips, eating in restaurants and other public activities through April.

Florida’s governor became the latest to issue a statewide stay-at-home order.

Tokyo’s Nikkei 225 lost 1.4% to 17,818.72, while Hong Kong recovered from losses, gaining 0.4% to 23,178.08.

The Shanghai Composite Index gained to 2,761.50. The Kospi in Seoul rose to 1,725.64, while Sydney’s S&P-ASX 200 slipped 2% to 5,154.30.

Technical Indicators

Overall, the bias in prices is: Downwards.

Note: this chart shows extraordinary price action to the downside.

By the way, prices are vulnerable to a correction towards 2,888.39.

The projected upper bound is: 2,939.03.

The projected lower bound is: 2,609.87.

The projected closing price is: 2,774.45.

Candlesticks

A big white candle occurred. This is generally considered bullish, as prices closed significantly higher than they opened. If the candle appears when prices are “low,” it may be the first sign of a bottom. If it occurs when prices are rebounding off of a support area (e.g., a moving average, trendline, or retracement level), the long white candle adds credibility to the support. Similarly, if the candle appears during a breakout above a resistance area, the long white candle adds credibility to the breakout.
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 29 white candles and 21 black candles for a net of 8 white candles.

An engulfing bullish line occurred (where a white candle’s real body completely contains the previous black candle’s real body). The engulfing bullish pattern is bullish during a downtrend (which appears to be the case with SSE COMPOSITE). It then signifies that the momentum may be shifting from the bears to the bulls.

If the engulfing bullish pattern occurs during an uptrend, it may be a last engulfing top which indicates a top. The test to see if this is the case is if the next candle closes below the top of the current (white) candle’s real body.

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 39.6770. 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 45.09. 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 41 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 25. This is not a topping or bottoming area. The last signal was a buy 7 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 buy 3 period(s) ago.

Rex Takasugi – TD Profile

SSE COMPOSITE closed up 46.116 at 2,780.638. Volume was 15% below average (neutral) and Bollinger Bands were 59% wider than normal.

Open     High      Low     Close     Volume___
2,720.2292,780.6382,719.9042,780.63821,786,460,160
Technical Outlook 
Short Term: Neutral
Intermediate Term: Bearish
Long Term: Bearish
Moving Averages: 10-period     50-period     200-period
Close: 2,745.96 2,902.91 2,935.40
Volatility: 31 36 23
Volume: 24,002,775,040 30,594,459,648 21,023,911,936

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 5.3% 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 13 periods. Our momentum oscillator has set a new 14-period high while the security price has not. This is a bullish divergence.

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