Shanghai: SSE Composite Index (.SSEC) coming down from the highest closing in more than seven weeks

Shanghai: SSE Composite Index (.SSEC) coming down from the highest closing in more than seven weeks

Shanghai: SSE Composite Index (.SSEC) coming down from the highest closing in more than seven weeks

Chinese stocks closed lower Tuesday, with the benchmark Shanghai Composite Index coming down from the highest closing in more than seven weeks.

The index closed 0.58 percent lower at 2,781.14 points, after closing at the highest since Aug. 1, 2018 on Friday.

The Shenzhen Component Index closed 0.66 percent lower at 8,353.38 points.

Combined turnover on the two bourses remained light, coming down to around 242 billion yuan (35.36 billion U.S. dollars) from 321 billion yuan on Friday.

Guangzhou Wanlong Securities Advisory Consultants Ltd. attributed the declines partly to weak market sentiment after a three-day Mid-Autumn Festival holiday.

“The capital in the stock market mostly took a prudent and defensive attitude,” the firm said in a research note.

The real-estate sector led the drops with sub-index down 1.62 percent. Poly Real Estate, a large property developer in China, dropped 6.01 percent.

Overall, the bias in prices is: Sideways.

The projected upper bound is: 2,902.95.

The projected lower bound is: 2,711.03.

The projected closing price is: 2,806.99.

Candlesticks

A white body occurred (because prices closed higher than they opened).
During the past 10 bars, there have been 6 white candles and 4 black candles for a net of 2 white candles. During the past 50 bars, there have been 24 white candles and 26 black candles for a net of 2 black candles.

Three white candles occurred in the last three days. Although these candles were not big enough to create three white soldiers, the steady upward pattern is bullish.

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 91.6709. This is an overbought reading. However, a signal is not generated until the Oscillator crosses below 80 The last signal was a buy 8 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 60.92. 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 56 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 167.This is an overbought reading. However, a signal isn’t generated until the indicator crosses below 100. The last signal was a buy 5 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 buy 5 period(s) ago.

Rex Takasugi – TD Profile

SSE COMPOSITE closed up 25.675 at 2,806.813. Volume was 9% above average (neutral) and Bollinger Bands were 21% narrower than normal.

Open High Low Close Volume___
2,785.3162,827.3412,783.3422,806.81313,956,770,816

Technical Outlook
Short Term: Overbought
Intermediate Term: Bullish
Long Term: Bearish

Moving Averages: 10-period 50-period 200-period
Close: 2,722.16 2,757.84 3,079.60
Volatility: 21 22 21
Volume: 11,638,790,144 12,497,920,000 15,053,799,424

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 8.9% below its 200-period moving average and is in an upward trend. Volatility is Our volume indicators reflect volume flowing into and out of .SSEC at a relatively equal pace (neutral). Our trend forecasting oscillators are currently bullish on .SSEC and have had this outlook for the last 3 periods.

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