Shanghai: SSE Composite Index (.SSEC) best week since March 2016

Shanghai: SSE Composite Index (.SSEC) best week since March 2016

Shanghai: SSE Composite Index (.SSEC) best week since March 2016

China and Hong Kong stocks climbed on Friday on expectations that policymakers will unveil more measures to offset the adverse impact of the trade war on economic growth.

The Shanghai Composite Index jumped 2.5 per cent for its biggest gain in six weeks as trading volumes surged 47 per cent above the 30-day average, according to Bloomberg data. The gauge advanced 4.3 per cent for the week, the best performance for the five-day period since March 2016.

Overall, the bias in prices is: Sideways.

The projected upper bound is: 2,892.40.

The projected lower bound is: 2,701.23.

The projected closing price is: 2,796.81.

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 4 white candles and 6 black candles for a net of 2 black candles. During the past 50 bars, there have been 22 white candles and 28 black candles for a net of 6 black 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 91.0120. This is an overbought reading. However, a signal is not generated until the Oscillator crosses below 80 The last signal was a buy 6 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 60.67. 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 54 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 176.This is an overbought reading. However, a signal isn’t generated until the indicator crosses below 100. The last signal was a buy 3 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 68.241 at 2,797.485. Volume was 23% above average (neutral) and Bollinger Bands were 25% narrower than normal.

Open High Low Close Volume___
2,733.8742,797.4852,722.0322,797.48515,801,664,512

Technical Outlook
Short Term: Overbought
Intermediate Term: Bullish
Long Term: Bearish

Moving Averages: 10-period 50-period 200-period
Close: 2,696.79 2,758.33 3,084.80
Volatility: 22 22 21
Volume: 11,157,532,672 12,421,170,176 15,071,649,792

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 9.3% below its 200-period moving average and is in an upward trend. Volatility is extremely high when compared to the average volatility over the last 10 periods. There is a good possibility that volatility will decrease and prices will stabilize in the near term. 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 1 periods.

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