Shanghai: SSE Composite Index (.SSEC) China moves again to curb market panic
Beijing has ramped up efforts to curb panic selling after China’s stockmarket hit new two-year lows on growing concern about US trade tariffs, a slowing economy, a weaker currency and the risk of the country’s unregulated debt spiralling out of control.
Policy changes such as the central government’s move to switch off low-interest loans for shanty town redevelopment has undermined confidence in China’s $US7 trillion equity market just as the first wave of US President Donald Trump’s proposed tariffs on Chinese goods comes into effect.
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 3,025.04.
The projected upper bound is: 2,880.87.
The projected lower bound is: 2,679.68.
The projected closing price is: 2,780.28.
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 23 white candles and 27 black candles for a net of 4 black candles.
A long lower shadow occurred. This is typically a bullish signal (particularly when it occurs near a low price level, at a support level, or when the security is oversold).
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 41.6935. This is not an overbought or oversold reading. The last signal was a buy 2 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 29.15. 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 2 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 -110.This is an oversold reading. However, a signal isn’t generated until the indicator crosses above -100. The last signal was a buy 2 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 26 period(s) ago.
Rex Takasugi – TD Profile
SSE COMPOSITE closed up 11.331 at 2,786.888. Volume was 3% below average (neutral) and Bollinger Bands were 89% 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: 2,839.51 3,058.09 3,263.56
Volatility: 24 21 18
Volume: 13,256,429,568 13,448,839,168 16,642,826,240
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 14.6% 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 22 periods. Our momentum oscillator is currently indicating that .SSEC is currently in an oversold condition.