Shanghai: SSE Composite Index (.SSEC) cautious trade as tariff comment deadline expires
Stocks in China ended higher on Friday, but the Shanghai Composite index and blue-chip shares closed lower for the week, as a deadline for public comments on fresh US trade tariffs expired.
At the close, the Shanghai Composite index was up 10.71 points or 0.4 per cent at 2,691.59. The index was down 0.8 per cent for the week. The blue-chip CSI300 index ended 0.45 per cent higher, but was down 1.7 per cent for the week.
The CSI300 financial sector sub-index rose 0.8 per cent and the real estate index ended up 0.94 per cent.
US tariffs on Chinese goods
The Trump administration is ready to move ahead with a next round of tariffs on $200 billion worth of Chinese imports after a public comment period ended at midnight in Washington on Thursday (0400 GMT Friday), but the timing is uncertain, people familiar with the administration’s plans told Reuters.
China has warned of retaliation if the United States introduces new tariffs, a foreign ministry spokesman had said on Thursday.
Overall, the bias in prices is: Downwards.
The projected upper bound is: 2,800.84.
The projected lower bound is: 2,597.96.
The projected closing price is: 2,699.40.
A white body occurred (because prices closed higher 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 23 white candles and 27 black candles for a net of 4 black candles.
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 16.4174. This is an oversold reading. However, a signal is not generated until the Oscillator crosses above 20 The last signal was a sell 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 42.16. 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 44 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 buy 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 sell 1 period(s) ago.
Rex Takasugi – TD Profile
SSE COMPOSITE closed up 10.708 at 2,702.301. Volume was 17% below average (neutral) and Bollinger Bands were 43% narrower than normal.
Open High Low Close Volume___
Short Term: Oversold
Intermediate Term: Bearish
Long Term: Bearish
Moving Averages: 10-period 50-period 200-period
Close: 2,736.07 2,776.81 3,118.13
Volatility: 19 23 21
Volume: 10,902,553,600 12,786,501,632 15,441,945,600
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 13.3% below 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 16 periods.