Shanghai: SSE Composite Index (.SSEC) data showed industrial profit growth in China continuing to slow

Shanghai: SSE Composite Index (.SSEC) data showed industrial profit growth in China continuing to slow

Shanghai: SSE Composite Index (.SSEC) data showed industrial profit growth in China continuing to slow

China stocks ended lower Thursday after data showed industrial profit growth in China continuing to slow in August and after the U.S. Federal Reserve lifted rates, while news of A-share inclusion in FTSE Russell indexes failed to boost sentiment.

At the close, the blue-chip CSI300 index was 0.4 percent lower at 3,403.59, while the Shanghai Composite Index fell 0.5 percent to 2,791.77 points.

China’s central bank left short-term rates unchanged on Thursday, choosing not to follow a benchmark interest rate rise by the U.S. Federal Reserve despite the risk that it could that it could put renewed pressure on the yuan.

Profit growth at China’s industrial firms slowed to a five-month low in August, fanning concerns about faltering domestic demand in the world’s second-largest economy as escalating trade frictions with the United States cloud its outlook.

The largest percentage gainers in the main Shanghai Composite index were Xinjiang Bai Hua Cun Co Ltd, up 10.03 percent, followed by Shanghai Hongda Mining Co Ltd, gaining 10.03 percent and Shandong Swan Cotton Industrial Machinery Stock Co Ltd, up by 10.03 percent.

The largest percentage losses in the Shanghai index were BAIC BluePark New Energy Technology Co Ltd down 36.88 percent, followed by HNA Technology Co Ltd losing 10.08 percent and A-Zenith Home Furnishings Co Ltd down by 10.02 percent.

So far this year, the Shanghai stock index is down 15.6 percent, the CSI300 has fallen 15.6 percent while China’s H-share index listed in Hong Kong is down 6.5 percent. Shanghai stocks have risen 2.44 percent this month.

Overall, the bias in prices is: Sideways.

The projected upper bound is: 2,887.93.

The projected lower bound is: 2,695.80.

The projected closing price is: 2,791.87.

Candlesticks

A black body occurred (because prices closed lower 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.

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 81.6533. This is an overbought reading. However, a signal is not generated until the Oscillator crosses below 80 The last signal was a buy 9 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 58.24. 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 57 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 119.This is an overbought reading. However, a signal isn’t generated until the indicator crosses below 100. The last signal was a buy 6 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 6 period(s) ago.

Rex Takasugi – TD Profile

SSE COMPOSITE closed down -15.038 at 2,791.775. Volume was 3% below average (neutral) and Bollinger Bands were 18% narrower than normal.

Open High Low Close Volume___
2,805.7932,810.5062,786.3222,791.77512,399,769,600

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

Moving Averages: 10-period 50-period 200-period
Close: 2,735.73 2,757.93 3,077.05
Volatility: 21 22 21
Volume: 11,978,500,096 12,503,992,320 15,011,658,752

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 9.3% 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 4 periods.

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