Shanghai: SSE Composite Index (.SSEC) Chinese economy overall is still slowing

Shanghai: SSE Composite Index (.SSEC) Chinese economy overall is still slowing

Shanghai: SSE Composite Index (.SSEC) Chinese economy overall is still slowing

China’s fixed-asset investments decelerated further in August, to the slowest growth rate since official records were kept, as the country braces for the introduction of additional tariffs from President Donald Trump.

Fixed-asset investment—which measures spending on homes, factories, infrastructure, and other fixed assets—grew at the slowest rate on record in August, as Chinese economic growth continues to decline due to the tangible effects on business sentiment of U.S. tariffs.

The data comes at a critical time, testing the nerves of Beijing policymakers as Trump readies another round of tariffs on Chinese exports.

China’s National Bureau of Statistics reported Sept. 14 that fixed-asset investment growth for the first eight months of 2018 rose just 5.3 percent, the weakest reading since at least 1995, according to the Financial Times, and the slowest growth rate since official records were kept.

Chinese Communist Party officials are under tremendous pressure. China’s sputtering economy gives Beijing a weak hand to play ahead of key new trade talks between China and the United States.

Trump is reportedly planning to press ahead with another $200 billion of tariffs on China. He wrote on Sept. 13 that “our markets are surging, theirs are collapsing.”

Overall, the bias in prices is: Downwards.

The projected upper bound is: 2,777.77.

The projected lower bound is: 2,582.89.

The projected closing price is: 2,680.33.

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 22 white candles and 28 black candles for a net of 6 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 37.8160. This is not an overbought or oversold reading. The last signal was a buy 1 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 41.91. 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 49 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 -61. This is not a topping or bottoming area. The last signal was a buy 1 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 6 period(s) ago.

Rex Takasugi – TD Profile

SSE COMPOSITE closed down -4.935 at 2,681.643. Volume was 22% below average (neutral) and Bollinger Bands were 38% narrower than normal.

Open High Low Close Volume___
2,688.7792,694.9202,675.2902,681.64310,000,500,736

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

Moving Averages: 10-period 50-period 200-period
Close: 2,692.82 2,767.93 3,100.08
Volatility: 16 22 20
Volume: 10,235,586,560 12,451,453,952 15,166,497,792

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 13.5% 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 21 periods.

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