Shanghai: SSE Composite Index (.SSEC) China’s central bank decided to keep short-term borrowing rates steady

Shanghai: SSE Composite Index (.SSEC) China’s central bank decided to keep short-term borrowing rates steady

Shanghai: SSE Composite Index (.SSEC) China’s central bank decided to keep short-term borrowing rates steady

The mainland Chinese markets were mixed on the day, with the Shanghai composite slipping 0.52 percent to close at about 2,536.27 and the Shenzhen composite recovering from earlier losses to end the trading day up by 0.202 percent at around 1,297.10.

China’s central bank decided to keep short-term borrowing rates steady on Thursday, a day after announcing measures to encourage lending to small firms.

Following the People’s Bank of China’s move to spur lending to small businesses, Shanghai-listed shares of major banks declined as Industrial and Commercial Bank of China fell 1.88 percent, Agricultural Bank of China shed 0.57 percent and China Construction Bank dropped 2.14 percent. Financial stocks make up nearly 40 percent of the Shanghai composite.

Overall, the bias in prices is: Downwards.

The projected upper bound is: 2,643.20.

The projected lower bound is: 2,427.45.

The projected closing price is: 2,535.32.

Candlesticks

A black body occurred (because prices closed lower than they opened).
During the past 10 bars, there have been 3 white candles and 7 black candles for a net of 4 black candles. During the past 50 bars, there have been 23 white candles and 27 black candles for a net of 4 black candles.

Three black candles occurred in the last three days. Although these candles were not big enough to create three black crows, the steady downward pattern is bearish.

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 12.1733. This is an oversold reading. However, a signal is not generated until the Oscillator crosses above 20 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 38.63. 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 -175.This is an oversold reading. However, a signal isn’t generated until the indicator crosses above -100. The last signal was a buy 16 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 4 period(s) ago.

Rex Takasugi – TD Profile

SSE COMPOSITE closed down -13.296 at 2,536.268. Volume was 15% below average (neutral) and Bollinger Bands were 37% narrower than normal.

Open High Low Close Volume___
2,544.5052,554.8592,516.0192,536.26812,056,649,728

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

Moving Averages: 10-period 50-period 200-period
Close: 2,587.50 2,608.42 2,873.31
Volatility: 15 26 24
Volume: 11,864,029,184 16,148,657,152 14,338,209,792

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 11.7% below its 200-period moving average and is in an downward trend. Volatility is relatively normal 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 7 periods.

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