Shanghai: SSE Composite Index (.SSEC) Beijing’s plans to conduct accounting checks pulled healthcare firms lower
China’s main stock market indexes ended flat on Wednesday as Beijing’s plans to conduct accounting checks pulled healthcare firms lower, offsetting a regional rebound sparked by the U.S. central bank’s comments that raised hopes of an interest rate cut.
At the close, the Shanghai Composite index was down 0.03% at 2,861.42.
Offering a boost to investor sentiment, Chinese President Xi Jinping said the country’s economy is stable, healthy and well placed to meet all risks and challenges.
But the International Monetary Fund on Wednesday cut its 2019 economic growth forecast for China to 6.2% on heightened uncertainty around trade frictions, saying that more monetary policy easing would be warranted if the Sino-U.S. trade war escalates.
The smaller Shenzhen index ended unchanged for the day and the start-up board ChiNext Composite index was weaker by 0.35%.
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 2,950.99.
The projected upper bound is: 2,992.18.
The projected lower bound is: 2,721.06.
The projected closing price is: 2,856.62.
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 24 white candles and 26 black candles for a net of 2 black candles.
Three black candles occurred in the last three days. Although these candles were not big enough to create three black crows, the steady downward pattern is 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 15.9293. This is an oversold reading. However, a signal is not generated until the Oscillator crosses above 20 The last signal was a sell 13 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 38.78. 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 18 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 -63. This is not a topping or bottoming area. The last signal was a buy 7 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 7 period(s) ago.
Rex Takasugi – TD Profile
SSE COMPOSITE closed down -0.862 at 2,861.418. Volume was 40% below average (neutral) and Bollinger Bands were 65% narrower than normal.
Open High Low Close Volume___
Short Term: Oversold
Intermediate Term: Bearish
Long Term: Bullish
Moving Averages: 10-period 50-period 200-period
Close: 2,884.08 3,038.79 2,778.88
Volatility: 14 29 27
Volume: 19,704,936,448 29,182,865,408 21,397,635,072
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 3.0% above its 200-period moving average and is in an downward trend. Volatility is extremely low when compared to the average volatility over the last 10 periods. There is a good possibility that there will be an increase in volatility along with sharp price fluctuations in the near future. 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 26 periods.