Shanghai: SSE Composite Index (.SSEC) data shows surprisingly strong exports
China stocks posted modest gains on Thursday morning, rebounding from three days of losses, as new data showed surprisingly strong exports and imports in October. At the midday break, the Shanghai Composite index was up 16.08 points or 0.61 per cent at 2,657.42.
China’s blue-chip CSI300 index was up 0.68 per cent, with its financial sector sub-index higher by 1 per cent, consumer staples sector up 1.12 per cent, real estate index up 1.3 per cent and healthcare sub-index up 1.06 per cent.
Chinese H-shares listed in Hong Kong rose 1.19 per cent to 10,768.21, while the Hang Seng Index was up 0.96 per cent at 26,398.90. The smaller Shenzhen index was up 0.6 per cent and the start-up board ChiNext Composite index was higher by 0.46 per cent.
The price-to-earnings ratio of the Shanghai index was 11.07 as of the last full trading day, while the dividend yield was 2.8 per cent. So far this week, the market capitalisation of the Shanghai stock index has fallen by 1.31 per cent to 28.25 trillion yuan ($4.08 trillion).
Overall, the bias in prices is: Downwards.
The projected upper bound is: 2,760.75.
The projected lower bound is: 2,507.35.
The projected closing price is: 2,634.05.
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 24 white candles and 26 black candles for a net of 2 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 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.
One method of interpreting the Stochastic Oscillator is looking for overbought areas (above 80) and oversold areas (below 20). The Stochastic Oscillator is 59.5014. This is not an overbought or oversold reading. The last signal was a sell 0 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 49.68. 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 14 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 63. This is not a topping or bottoming area. The last signal was a sell 2 period(s) ago.
The Moving Average Convergence/Divergence indicator (MACD) gives signals when it crosses its 9 period signal line. The last signal was a buy 10 period(s) ago.
Rex Takasugi – TD Profile
SSE COMPOSITE closed down -5.710 at 2,635.632. Volume was 19% above average (neutral) and Bollinger Bands were 24% narrower than normal.
Open High Low Close Volume___
Short Term: Overbought
Intermediate Term: Bullish
Long Term: Bearish
Moving Averages: 10-period 50-period 200-period
Close: 2,619.63 2,674.07 2,989.87
Volatility: 24 30 25
Volume: 17,566,087,168 13,542,874,112 15,047,829,504
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.
SSE COMPOSITE is currently 11.8% below its 200-period moving average and is in an upward 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 bullish on .SSEC and have had this outlook for the last 2 periods.