Shanghai: SSE Composite Index (.SSEC) China stocks reverse gains to end lower; real estate, airline shares slump

Shanghai: SSE Composite Index (.SSEC) China stocks reverse gains to end lower; real estate, airline shares slump

Shanghai: SSE Composite Index (.SSEC) China stocks reverse gains to end lower; real estate, airline shares slump

  • Shanghai stocks lower, blue-chip CSI300 index down
  • Gains in Shanghai stocks led by Shandong Daye and losses by NINGBO BIRD
  • China’s A-shares at 20.21 percent premium over H-shares

China stocks gave up early gains to close lower on Monday, as an expected reserve requirement ratio (RRR) cut was largely offset by lingering trade war fears, and as a weakening yuan pushed lower real estate and airline shares.

The blue-chip CSI300 index .CSI300 fell 1.3 percent to 3,560.48, while the Shanghai Composite Index SSEC slid 1.1 percent to 2,859.34.

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 3,103.42.

The projected upper bound is: 2,949.01.

The projected lower bound is: 2,755.71.

The projected closing price is: 2,852.36.

Candlesticks

A black body occurred (because prices closed lower 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 21 white candles and 29 black candles for a net of 8 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 14.3030. This is an oversold reading. However, a signal is not generated until the Oscillator crosses above 20 The last signal was a sell 10 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 25.24. 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 59 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 -109.This is an oversold reading. However, a signal isn’t generated until the indicator crosses above -100. The last signal was a buy 8 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 sell 20 period(s) ago.

Rex Takasugi – TD Profile

SSE COMPOSITE closed down -30.424 at 2,859.336. Volume was 20% below average (neutral) and Bollinger Bands were 41% wider than normal.

Open High Low Close Volume___
2,903.4492,908.6242,857.8712,859.33612,191,768,576

Technical Outlook
Short Term: Oversold
Intermediate Term: Bearish
Long Term: Bearish

Moving Averages: 10-period 50-period 200-period
Close: 2,969.69 3,095.51 3,280.29
Volatility: 24 20 17
Volume: 13,787,395,072 13,684,574,208 17,007,462,400

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 12.8% below its 200-period moving average and is in an downward 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 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 16 periods. Our momentum oscillator is currently indicating that .SSEC is currently in an oversold condition. The security price has set a new 14-period low while our momentum oscillator has not. This is a bullish divergence.

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