Shanghai: SSE Composite Index (.SSEC) China, Hong Kong stocks track global sell-off amid trade fears
- SSEC -0.8 pct, CSI300 -1.1 pct, HSI -0.2 pct
- HK Shanghai Connect daily quota used 1.9 pct, Shanghai->HK daily quota used -0.3 pct
- FTSE China A50 -1.7 pct, BNY Mellon ADR China Select Index -3.9 pct
China and Hong Kong stocks tracked the global sell-off to edge lower on Tuesday, as an escalating trade friction between the United States and other major economies steered investors away from riskier assets.
The CSI300 index fell 1.1 percent to 3,520.17 points, hitting its lowest in more than a year, while the Shanghai Composite Index hit a two-year trough.
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 3,086.62.
The projected upper bound is: 2,934.09.
The projected lower bound is: 2,741.50.
The projected closing price is: 2,837.80.
A white body occurred (because prices closed higher 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 22 white candles and 28 black candles for a net of 6 black 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 5 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 23.2794. This is not an overbought or oversold reading. The last signal was a buy 0 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 24.23. This is where it usually bottoms. The RSI usually forms tops and bottoms before the underlying security. A buy or sell signal is generated when the RSI moves out of an overbought/oversold area. The last signal was a buy 60 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 -115.This is an oversold reading. However, a signal isn’t generated until the indicator crosses above -100. The last signal was a buy 9 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 21 period(s) ago.
Rex Takasugi – TD Profile
SSE COMPOSITE closed down -14.828 at 2,844.508. Volume was 16% below average (neutral) and Bollinger Bands were 49% wider than normal.
Open High Low Close Volume___
Short Term: Neutral
Intermediate Term: Bearish
Long Term: Bearish
Moving Averages: 10-period 50-period 200-period
Close: 2,948.86 3,088.79 3,277.70
Volatility: 24 20 17
Volume: 13,960,941,568 13,639,948,288 16,941,691,904
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 13.2% 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 moderate flows of volume out of .SSEC (mildly bearish). Our trend forecasting oscillators are currently bearish on .SSEC and have had this outlook for the last 17 periods. Our momentum oscillator is currently indicating that .SSEC is currently in an oversold condition.